Revenue up, profits down at Ghani Glass

Ghani Glass Limited (PSX: GHGL), the country’s largest listed glass‑maker, has reported a mixed score‑card for the year ended 30 June 2024 (FY24). Net revenue advanced 16% year‑on‑year to Rs47.8 billion, but that growth failed to translate into the bottom line. Profit after tax declined 17% to Rs6.75 bn, pulling earnings per share down to Rs6.75 from Rs8.10 in FY23.

The culprit was a sharp escalation in production costs. The company’s cost of sales jumped 22% to Rs34.7 bn, outpacing revenue and compressing the gross margin from 31% to 27 pc. Operating expenses also frayed the cushion: selling and distribution outlays surged 23 pc, while administrative expenses rose 14 pc, together slicing four percentage points off the operating margin, which slipped to 16.7 pc.

Finance charges, though still modest at Rs206 million, ballooned 76% amid higher policy rates and working‑capital borrowings. Meanwhile a 215% leap in taxation—the company warned it will enter the full corporate tax regime with an effective rate of 39% from FY26—further hollowed out net profitability.

Quarterly numbers underline the downshift. In 3QFY25 (the three months to March 2025) revenue edged just 1% higher to Rs11.5 bn, yet earnings per share fell 4% to Rs1.65 as the net margin retreated to 14.3 pc. Management attributed the pressure to subdued float‑glass demand from the still‑moribund construction sector and the cost of running only one furnace at partial capacity.