Ghandhara Tyre reports Rs366 million loss, despite increase in comprehensive income

Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) reported a net loss of Rs366 million for the year ending June 30, 2025, compared to a profit of Rs229 million in the previous fiscal year.

The company’s net sales fell by 13.34% to Rs17.79 billion, down from Rs20.53 billion in FY24, while the cost of sales dropped by 10.04% to Rs15.52 billion. However, despite the decrease in costs, gross profit decreased by 30.69%, standing at Rs2.27 billion.

Administrative expenses increased by 5.76% to Rs432.8 million, while distribution costs decreased by 6.97% to Rs752.6 million. Other income saw a slight decline of 2.45% to Rs141.6 million, while other expenses surged by 45.34% to Rs43.5 million.

Profit from operations dropped by 45.54%, amounting to Rs1.18 billion compared to Rs2.17 billion in FY24. Despite a reduction in finance costs by 19.6% to Rs1.35 billion, the company still faced a pre-tax loss of Rs150.3 million, a sharp contrast to a profit of Rs495.7 million last year.

Revenue tax expenses surged by 167.66% to Rs195.7 million, further contributing to the decline in profitability. After a taxation charge of Rs20.1 million, the company ended the year with a net loss of Rs366 million.

However, the company reported a significant improvement in other comprehensive income, with staff gratuity re-measurement increasing to Rs59.7 million, and the revaluation of leasehold lands contributing Rs1.28 billion. Total comprehensive income for the year stood at Rs970.4 million, a 302% increase from last year.

Earnings per share (EPS) dropped to a loss of Rs3, compared to earnings of Rs1.88 in FY24. Despite the loss, the company’s comprehensive income performance showed resilience amidst operational challenges. Despite a bullish sentiment in the market, the company's stock price on the stock exchange closed in the red, going down by almost 8%, showing reduced market confidence in the impending financial health of the company.