Ghandhara Tyre’s profits hit a bump in the road with 83% drop

February 27, 2025 (MLN): Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) reported a significant 83% decline in net profit for the half-year ended December 31, 2024, posting Rs25 million compared to Rs151mn in the same period last year.

The earnings per share (EPS) also fell sharply from Rs1.24 to Rs0.21, highlighting a challenging business environment.

GTYR’s net sales declined by 9% to Rs9 billion from Rs10bn in the previous year.

The decrease in revenue was accompanied by a 6% reduction in the cost of sales, which stood at Rs7.7bn.

Consequently, the company's gross profit declined by 22.4% to Rs1.3bn from Rs1.6bn, demonstrating margin pressures amid rising operational costs.

Administrative expenses increased by 6% to Rs223mn, while distribution costs saw an 11% reduction, reaching Rs344mn.

Other income fell by 21.8% to Rs72mn, while other expenses significantly decreased by 42.6% to Rs16.7mn.

Profit from operations declined by 31%, reaching Rs761.7mn compared to Rs1bn in the corresponding period last year.

The company's finance costs dropped by 12% to Rs733mn; however, it remained a major expense affecting the bottom line.

Despite a tax reversal of Rs53mn, GTYR’s profit before tax stood at a loss of Rs28mn, a stark contrast to the Rs254mn profit reported in the previous year.

Higher revenue tax of Rs61.5mn, reflecting a 208.5% increase, further impacted profitability

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