Pakistan International Bulk Terminal Limited (PIBTL), listed on the Pakistan Stock Exchange (PSX), reported a significant financial setback for the first quarter of fiscal year 2025 (Q1FY25). The company posted a net loss of Rs320.89 million during the period, a sharp contrast to the profit of Rs577.38 million it recorded in the same quarter of the previous year (Q1FY24).
Revenue Decline Hits Profits
PIBTL’s financial performance took a major hit due to a sharp drop in revenue. The company’s sales plunged by 47% year-on-year (YoY) to Rs2.31 billion in Q1FY25, down from Rs4.37 billion in Q1FY24. This substantial decrease in revenue led to a significant reduction in gross profit, which fell by a staggering 86.1%, from Rs1.78 billion last year to Rs247.31 million this year.
Although the cost of services provided by PIBTL dropped by nearly 20%, the revenue decline was much greater, leaving the company with a much smaller profit margin to work with.
Rise in Administrative Expenses and Lower Finance Costs
Administrative and general expenses for PIBTL increased slightly by 5% YoY, rising from Rs152.31 million in Q1FY24 to Rs159.95 million in Q1FY25. Although this increase was not drastic, it added to the challenges faced by the company in managing its profitability amid declining revenue.
On the positive side, PIBTL’s finance costs decreased by 21.47%, dropping to Rs432.56 million in Q1FY25, compared to Rs550.85 million in the same period last year. This reduction in finance costs provided some relief but was not enough to offset the significant revenue drop.
Other Income and Exchange Gains
PIBTL saw a positive trend in its other income, which grew by 24.54% to Rs25.53 million in Q1FY25, up from Rs20.5 million in Q1FY24. Additionally, the company benefited from an exchange gain of Rs11.86 million during the period, compared to an exchange loss of Rs54.28 million in the previous year. These factors helped mitigate some of the negative impact on the company’s overall financials, but they were not substantial enough to prevent the net loss.
Pre-tax and Post-tax Loss
The company’s pre-tax loss amounted to Rs336.85 million, a significant reversal from the pre-tax profit of Rs1.04 billion it had posted in Q1FY24. On the taxation front, PIBTL paid Rs15.95 million in taxes for the quarter. After accounting for these taxes, the company ended the quarter with a net loss of Rs320.89 million, compared to a net profit of Rs577.38 million in the same quarter last year.
Conclusion
The drastic decline in PIBTL’s revenue in Q1FY25, along with rising administrative expenses, resulted in a substantial loss for the company. Despite lower finance costs and gains in other income and foreign exchange, the company’s overall performance was significantly affected. PIBTL will need to navigate these challenges carefully in the coming quarters to stabilize its financial position and return to profitability.
