Ghandhara Tyre and Rubber Reports Profit Growth Despite Economic Challenges

Karachi: Ghandhara Tyre and Rubber Company Limited (GTYR) has reported a significant financial recovery in its latest 2024 financial results, reflecting growth despite the challenges posed by a high-interest rate environment and economic slowdown in Pakistan. The company recorded a notable turnaround, achieving a profit after tax of Rs. 229.00 million for the fiscal year ending 2024, compared to a loss of Rs. 167.00 million in the prior year.

According to the company’s financial briefing on October 28, 2024, GTYR’s net sales surged to Rs. 20,538.00 million in 2024, representing a 37% increase from Rs. 15,019.00 million in 2023. Gross profit margins also improved, rising to 16.00% in 2024, up from 15.30% in the previous year.

The company attributed this growth to improved operational efficiencies and cost-saving measures, despite rising finance costs, which grew by 30% to Rs. 1,680.00 million in 2024 from Rs. 1,292.00 million in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 67% increase, reaching Rs. 2,701.00 million in 2024, compared to Rs. 1,615.00 million in 2023.

GTYR has proposed a cash dividend of 18.70% for 2024, pending shareholder approval. The company also highlighted several key initiatives aimed at driving future growth, including a solar energy agreement with K-Electric for up to 2MW and a seven-year technical services agreement with Shandong Huasheng Rubber Co. Ltd. to bolster production efficiencies.

The company’s outlook remains cautiously optimistic, supported by ongoing efforts to enhance export sales and mitigate the impact of a sluggish domestic market. GTYR expects that easing monetary policies and stability in the Pakistani rupee will contribute to financial improvements in the coming years.

The post Ghandhara Tyre and Rubber Reports Profit Growth Despite Economic Challenges appeared first on .