KARACHI: Ghani ChemWorld Limited (PSX: GCWL) has reported a strong turnaround in its financial performance, posting a net profit of Rs200.08 million for the nine months ended March 31, 2026, compared with a net loss of Rs241,595 recorded in the corresponding period last year. The company’s board approved the financial results at its meeting held on April 28, 2026.

The company achieved gross sales of Rs124.07 million, while net sales stood at Rs105.15 million after deducting sales tax. Despite recording a modest gross profit of Rs3.90 million, Ghani ChemWorld’s bottom line received a significant boost from its share of profit from an associated company, which amounted to Rs234.81 million during the nine-month period.

Finance costs remained substantial at Rs32.46 million, while administrative and selling expenses totaled approximately Rs7.13 million. Nevertheless, the strong contribution from the associated company enabled the company to report a profit before and after taxation of Rs200.08 million. Earnings per share (EPS) improved to Rs0.80, compared with a loss per share of Rs4.832 in the same period last year.

For the quarter ended March 31, 2026, Ghani ChemWorld posted a net profit of Rs54.67 million, translating into quarterly earnings per share of Rs0.219, reflecting continued profitability during the third quarter.

The company’s financial position also strengthened during the period. Total assets increased to Rs6.67 billion as of March 31, 2026, compared with Rs4.63 billion at the end of June 2025. Shareholders’ equity rose to Rs3.67 billion, supported by the period’s earnings, while revenue reserves increased significantly.

In its cash flow statement, Ghani ChemWorld reported Rs888.50 million in net cash generated from operating activities. However, the company invested Rs1.19 billion in capital expenditure, resulting in negative investing cash flows. Financing activities, including secured short-term borrowings, generated Rs387.49 million, allowing the company to end the period with Rs88.40 million in cash and cash equivalents.

The Board of Directors did not recommend any cash dividend, bonus shares, or right shares for the period, indicating that profits will be retained to support the company’s future operations and expansion plans.