Dewan Mushtaq Textile Mills Posts Rs8.32 Million Quarterly Loss

Dewan Mushtaq Textile Mills Limited has reported a loss after taxation of Rs8.32 million for the first quarter ended September 30, 2024, compared with a loss of Rs3.19 million in the corresponding period of the previous year.

According to the company’s unaudited financial results, net sales remained unreported for the quarter, while the company incurred a cost of sales of Rs7.64 million, resulting in an equal gross loss. Administrative and general expenses stood at Rs1.21 million, compared with Rs1.49 million in the same period of 2023.

The company recorded an operating loss of Rs8.85 million, compared with Rs9.41 million in the previous year. Bank charges were minimal at Rs32, while the previous year had recorded other income of Rs5.63 million. As a result, the loss before taxation increased to Rs8.85 million, from Rs3.79 million a year earlier.

After taxation of Rs534,653, Dewan Mushtaq Textile Mills reported a net loss of Rs8.32 million, translating into a basic and diluted loss per share of Rs0.72, compared with Rs0.28 per share in the same quarter of the previous year.

Balance Sheet Position

The company’s financial position at September 30, 2024 showed total equity of approximately Rs202.60 million, down from Rs210.92 million at June 30, 2024. Accumulated losses increased to Rs725.91 million, compared with Rs718.90 million at the end of the previous financial year.

Current liabilities stood at approximately Rs584.21 million, including short-term borrowings of Rs232.20 million, accrued mark-up on loans of Rs136.90 million and the overdue portion of long-term loans amounting to Rs176.36 million.

On the asset side, property, plant and equipment were valued at approximately Rs778.36 million, while current assets totaled around Rs35.19 million. Cash and bank balances declined to Rs4.41 million from Rs6.64 million at June 30, 2024.

Cash Flow and Equity

The company generated a net cash outflow from operating activities of Rs2.23 million during the quarter, compared with a net cash inflow of Rs172,438 in the corresponding period. Cash and cash equivalents consequently declined from Rs6.64 million at the beginning of the period to Rs4.41 million at September 30, 2024.

The statement of changes in equity also showed that the quarterly loss reduced total equity by Rs8.32 million. At September 30, 2024, accumulated losses stood at Rs725.91 million, while the surplus on revaluation of property, plant and equipment was Rs767.90 million.

The board recommended no cash dividend, bonus shares, right shares or other corporate action for the period.

Overall, the financial statements highlight continued pressure on the company’s earnings and liquidity position during the quarter, with the absence of reported sales and the resulting operating loss remaining key features of the reported results