Tariq Corporation Limited Reports Significant Losses, Declines Dividend Issuance

Lahore: Tariq Corporation Limited disclosed substantial financial losses for the nine months ending June 30, 2024, according to the latest financial results released by the company. The Board of Directors, meeting on July 29, 2024, has decided against issuing any cash dividends, bonus shares, or rights issues, reflecting the company’s challenging financial position.

For the nine-month period, Tariq Corporation reported a significant downturn in profitability with a net loss after taxation of Rs. 499.32 million, a stark reversal from the profit of Rs. 250.74 million recorded during the same period in the previous year. According to information available from the Pakistan Stock Exchange (PSX), revenue net from contracts with customers reached Rs. 6.70 billion, up from Rs. 5.22 billion the previous year, driven by a gross revenue increase to Rs. 7.77 billion from Rs. 5.96 billion.

Despite the higher revenue, the company’s cost of revenue surged to Rs. 6.99 billion from Rs. 4.68 billion, resulting in a gross loss of Rs. 291.31 million compared to a gross profit of Rs. 539.59 million in the prior year. This loss from operations was compounded by significant finance costs amounting to Rs. 222.11 million, though these were reduced from Rs. 418.00 million reported the previous year.

The financial strain was reflected in the basic and diluted loss per share, which escalated to Rs. 8.78 from earnings of Rs. 4.41 per share in the previous period. The quarterly data further emphasized the downturn, showing a loss after taxation of Rs. 8.43 million in the most recent quarter compared to a profit of Rs. 242.43 million in the same quarter of the previous year.

The financial statements, which will be detailed further in the company’s quarterly report to be transmitted through PUCARS, highlight the challenges faced by Tariq Corporation in maintaining profitability amidst rising operational costs and fluctuating market conditions.