Pakistan Cables reports loss after profitable year

April 24, 2025 (MLN): Pakistan Cables Limited (PCAL) has posted a net loss of Rs260.99 million [LPS: Rs4.79] for the nine-month period ended March 31, 2025, compared to a net profit of Rs254.7m [EPS: Rs4.68] recorded in the same period last year (SPLY).

The company’s revenue from contracts with customers grew by 13.74% year-on-year (YoY) to Rs22.24 billion, up from Rs19.56bn in SPLY.

However, the benefit of higher sales was offset by a 16.93% increase in cost of sales, which rose to Rs19.91bn, squeezing gross profit by 7.68% to Rs2.34bn.

Operating expenses remained under pressure, with marketing, selling, and distribution expenses rising by 11.53% to Rs797.61m, and administrative expenses increasing by 10.31% to Rs281.85m.

A reversal in impairment on trade debts amounting to Rs14.1m provided minor relief, compared to a loss of Rs25.05m in the same period last year.

Finance costs surged 43.87% to Rs1.81bn, reflecting the impact of elevated borrowing costs. Other expenses, however, fell by 57.6% to Rs17.7m.

Meanwhile, other income more than doubled, jumping 157.1% to Rs210.73m, and share of profit from an associate contributed Rs44.5mn.

Despite some positive developments, the company swung to a pre-tax loss of Rs321.54m from a pre-tax profit of Rs302.52m last year.

After accounting for a tax credit of Rs60.56m, the overall loss after tax stood at Rs260.99m.

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