Gandhara turns tide with Rs1.3bn profit

February 27, 2025 (MLN): Gandhara Industries Limited (PSX: GHNI) has reported a remarkable turnaround in its financial performance, posting a record profit of Rs1.3 billion for the half-year ended December 31, 2024, compared to a loss of Rs102.86 million in the same period last year.

This turnaround is attributed to the surge in revenue due to improved demand, coupled with a significant decline in finance costs, operational efficiency, and improved financial management.

As a result, the company reported earnings per share clocked in at (EPS) of Rs30.44, compared to the loss per share of Rs2.41 recorded in the same period last year.

According to the company’s condensed interim financial results, net sales surged by 131% to Rs11.57bn, up from Rs5.01bn in the corresponding period of 2023.

The gross profit soared 206% to Rs2.5bn, reflecting a strong recovery in sales and improved cost efficiencies. Profit from operations witnessed an astonishing 504% growth, reaching Rs1.84bn, compared to Rs305m last year.

A key factor driving the improved bottom line was the 83% reduction in finance costs, which fell to Rs49.27m from Rs299.83m.

Despite higher distribution and administrative expenses, the company’s strong top-line growth more than offset these increases.

However, the tax burden surged to Rs496.41m, reflecting the impact of higher earnings and taxation adjustments.

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