In FY24, Chenab Limited (CHBL) reported a net loss of PKR 326.21 million (LPS: PKR 2.84) compared to a net loss of PKR 405.14 million (LPS: PKR 3.52) in the SPLY. In 1QFY25, the company recorded a net loss of PKR 111.82 million (LPS: PKR 0.97), higher than the net loss of PKR 45.03 million (LPS: PKR 0.39) in the SPLY.
The management disclosed that Chenab Limited is operating at 25% unit utilization. To optimize production capacity, the company is engaged in toll manufacturing of fabrics for the local market. Gross profit for FY24 stood at PKR 10.87 million, impacted by higher fixed costs.
The increase in freight costs, driven by the Red Sea crisis, further escalated selling and distribution expenses. Other income rose due to the sale of a non-core asset under a scheme of arrangement. The proceeds were allocated 75% to debt repayment to banks and 25% for working capital requirements.
To further improve working capital, the directors injected approximately PKR 800 million into the company. Finance costs included prior mark-up, which will be paid after the principal amount, scheduled to be repaid over the next 14 years.
Looking ahead, the company expects to increase sales and improve gross profit margins by reducing fixed costs, leveraging banking channels, and enhancing working capital utilization.
Important Disclosures
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