Ghandhara Automobiles faces Rs258 million loss as sales drop 46 per cent

ISLAMABAD: Ghandhara Automobiles Limited (GAL) has reported a significant financial downturn for the fiscal year 2024, recording a loss of Rs258.81 million, compared to a profit of Rs63.7 million in the previous year.

The company’s revenue took a sharp hit, falling by 46.3 per cent to Rs5.39 billion, which was the main factor behind the negative earnings.

Although the cost of sales also dropped by 45.2 per cent, it wasn’t enough to offset the revenue decline, leading to a 62.5 per cent reduction in gross profit, which stood at Rs238.7 million for FY24.

Gross margins also worsened, shrinking to 4.4 per cent from 6.3 per cent in the previous year.

Other income for the company decreased by 32 per cent, amounting to Rs283.59 million in FY24, down from Rs417.04 million in FY23.

On the expense side, administrative costs rose by 6.3 per cent to Rs274.83 million. However, distribution costs and other operating expenses saw a reduction, falling by 23.1 per cent and 77.7 per cent, respectively.

Meanwhile, the company’s finance costs increased by 18.8 per cent, reaching Rs349.36 million, largely due to higher interest rates.

According to Mettis Global, the company’s tax payments also fell sharply by 96.3 per cent, with GAL paying Rs6.62 million in taxes, compared to Rs179.58 million in the previous year.

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