J.K. Spinning Mills Reports Decline in Yearly Profit Despite Increased Revenue

Faisalabad: J.K. Spinning Mills Ltd announced its financial results for the year ended June 30, 2024, revealing a significant decline in profit after taxation despite an increase in revenue. According to information available from the Pakistan Stock Exchange (PSX), the company registered a rise in gross revenue from contracts with customers, which reached PKR 41.82 billion in 2024, up from PKR 36.13 billion in 2023.

The company’s cost of sales also rose, totaling PKR 36.17 billion for the year, compared to PKR 31.34 billion the previous year, leading to a gross profit of PKR 5.64 billion in 2024 versus PKR 4.79 billion in 2023. However, increased distribution costs, administrative expenses, and other charges, which together amounted to PKR 2.02 billion, offset much of the gross profit.

J.K. Spinning Mills experienced a sharp increase in finance costs, which more than doubled to PKR 2.41 billion from PKR 956 million. This rise significantly impacted the profitability, bringing the profit before taxation to PKR 1.01 billion, a decrease from PKR 1.57 billion in the previous year. Consequently, the company’s profit after taxation stood at PKR 1.01 billion, down from PKR 1.82 billion, marking a significant decrease in net earnings.

Earnings per share also declined from PKR 17.79 in 2023 to PKR 9.84 in 2024. Despite the financial challenges, the Board of Directors has decided against issuing dividends, right issues, or bonus shares for the year. Furthermore, the company’s Annual General Meeting is scheduled for October 28, 2024, in Faisalabad, with the share transfer books to be closed from October 21 to October 28, 2024.

The Annual Report will be made available to shareholders through PUCARS at least 21 days before the meeting, providing stakeholders comprehensive insights into the company’s operations and financial health.