August 20, 2020 (MLN): General Tyre and Rubber Company has incurred losses of Rs. 332 million (LPS: 2.72) during the year ended June 30, 2020, as opposed to the earnings of Rs. 122.8 million recorded in the same period of last year.

The losses were a result of a decline in the company’s sales revenue by 16%, which in turn was attributable to PKR devaluation observed throughout the year as well as a massive decline in the sale of automobiles.

Even though there was a decrease of 13% in the cost of sales, the gross profits still fell by 34% as the impact of lower sales was much higher. The earnings were further strained by a 45% increase in finance cost.

Nonetheless, the losses were curtailed by factors such as a decline in other expenses by 84%, which translates into cost savings of nearly Rs. 110 million, as well as the presence of tax reversals amounting to Rs. 114.5 million.

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