Baluchistan Glass Ltd. Reports FY24 Losses and Operational Challenges

Karachi: Baluchistan Glass Ltd. (BGL) faced significant financial challenges in FY24, reporting a loss of PKR 508 million, a sharp increase from the previous year’s PKR 135 million. The losses were primarily attributed to an extended eleven-month shutdown and substantial costs associated with resuming production.

According to AKD Securities Limited, the company’s operations only restarted in June 2024 after a lengthy closure, which significantly impacted their financial results. The re-establishment of initial furnace temperatures and the resulting operational costs were concentrated in the final month of the fiscal year, further compounding the losses. The inability to maintain desired gas pressures led to the adoption of more expensive fuels like LPG, furnace oil, and diesel, increasing production costs. Additionally, the cost of gas was notably high due to a blend of 90% natural gas and 10% RLNG, setting the price at PKR 2,300/MMBtu.

BGL is currently operating only one of its three manufacturing facilities, located in Hub, with a capacity of 110 TPD out of a total 375 TPD. The product sales mix has shifted, with no pharmaceutical glass produced in FY24, although samples are being tested with potential customers. The company’s reputation has suffered due to operational inconsistencies, resulting in production delays and loss of industrial clientele. Following a decision at the recent Extraordinary General Meeting, BGL plans to bolster its financial position by converting a PKR 3.7 billion loan from its holding company into paid-up capital, pending approval from SECP.

The post Baluchistan Glass Ltd. Reports FY24 Losses and Operational Challenges appeared first on Pakistan Business News.