Ghandhara Tyre swings to loss in FY25

September 03, 2025 (MLN): Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) has posted a loss of Rs366 million for the year ended June 30, 2025, compared to a profit of Rs229m in the previous year.

Net sales dropped by 13.34% to Rs17.79 billion from Rs20.53bn last year, while the cost of sales decreased by 10.04% to Rs15.52bn.

Consequently, gross profit fell sharply by 30.69%, standing at Rs2.27bn against Rs3.27bn in FY24.

Administrative expenses increased slightly by 5.76% to Rs432.8m, whereas distribution costs declined by 6.97% to Rs752.6m.

Other income recorded a marginal decline of 2.45% to Rs141.6m, while other expenses surged 45.34% to Rs43.5m.

Profit from operations plunged by 45.54% to Rs1.18bn compared to Rs2.17bn last year.

Finance costs eased by 19.6% to Rs1.35bn but continued to weigh heavily on the bottom line.

Before taxation, revenue, and final taxes, the company posted a loss of Rs166.4m against a profit of Rs494.6m in FY24.

Including the share of profit from an associated company, which jumped significantly to Rs16.1m, the company still recorded a pre-tax loss of Rs150.3m compared to a profit of Rs495.7m last year.

Revenue tax expenses rose sharply by 167.66% to Rs195.7m, bringing the total loss before income taxation to Rs345.9m against a profit of Rs419.7m in the previous year.

After a taxation charge of Rs20.1m, the company ended the year with a net loss of Rs366m.

On the other hand, other comprehensive income provided some relief, with staff gratuity re-measurement rising to Rs59.7m, while the surplus on revaluation of leasehold lands added Rs1.28bn.

Total comprehensive income for the year stood at Rs970.4m, a 302% increase from Rs241.4m last year.

Earnings per share (EPS) deteriorated to a loss of Rs3, compared to earnings of Rs1.88 in FY24.

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