Dewan Khalid Textile Mills Posts Rs8.77 Million Quarterly Loss

Dewan Khalid Textile Mills Limited has reported a net loss of Rs8.77 million for the first quarter ended September 30, 2024, compared with a loss of Rs7.09 million in the corresponding period of 2023.

According to the company’s unaudited financial results, the board meeting was held on April 10, 2026, in Karachi. The company did not recommend any cash dividend, bonus shares, right shares, or other corporate action for the period.

Quarterly Financial Performance

The company reported a gross loss of Rs7.86 million during July-September 2024, compared with a gross loss of Rs8.50 million in the same quarter of 2023. Administrative and general expenses stood at Rs1.79 million, slightly below the Rs1.84 million recorded a year earlier.

As a result, the operating loss narrowed to Rs9.66 million, compared with Rs10.34 million in the corresponding quarter. However, the previous year’s results included Rs2.245 million in other income, while no other income was reported in the latest period. This contributed to the higher loss before taxation of Rs9.66 million, compared with Rs8.10 million a year earlier.

After taxation, the company posted a loss of Rs8.77 million, translating into a basic and diluted loss per share of Rs0.91, compared with a loss per share of Rs0.74 in the previous year’s quarter.

Balance Sheet Position

The company’s statement of financial position shows total assets of Rs738.27 million as of September 30, 2024, compared with Rs745.42 million at June 30, 2024. Property, plant and equipment accounted for Rs725.89 million of the assets.

Accumulated losses increased to Rs911.70 million, compared with Rs905.10 million at the end of June 2024. The surplus on revaluation of property, plant and equipment stood at Rs663.35 million. As a result, total equity was negative at approximately Rs17.23 million at September 30, 2024.

On the liabilities side, current liabilities totaled approximately Rs710.66 million. These included short-term borrowings of Rs462.76 million, accrued mark-up on loans of Rs125.53 million and the overdue portion of a syndicated long-term loan amounting to Rs104.01 million.

Cash Flow Remains Limited

The company’s cash and bank balances stood at Rs788,406 at the end of September 2024, down from Rs819,478 at June 30, 2024. The cash-flow statement shows a net decrease of Rs31,076 in cash and cash equivalents during the quarter.

The company recorded depreciation of Rs7.11 million during the quarter, while working-capital movements included an increase of Rs2.52 million in trade and other payables. The net cash outflow from operating activities was Rs31,076.

Outlook

The financial results highlight continued pressure on Dewan Khalid Textile Mills’ earnings, with the company remaining in a loss position during the quarter. While its operating loss was lower than in the comparable period, the absence of other income reported in the previous year’s quarter resulted in a higher loss before and after taxation.

The company also continues to carry substantial accumulated losses and current liabilities, while its cash balance remains relatively limited compared with its overall liabilities. The quarterly report for the period ended September 30, 2024, was stated to be transmitted separately through PUCARS within the specified time.