⚡ Flash Summary
Dewan Khalid Textile Mills Limited reported its unaudited financial results for the half-year ended December 31, 2023. The company continues to experience significant financial challenges. The auditors have expressed an adverse opinion on the company’s going concern status, citing closure of operations and default in repayment of restructured liabilities. There is no dividend recommended for the period.
📌 Key Takeaways
- ❌ No cash dividend, bonus shares, or right shares were recommended.
- 📉 Loss after taxation for the half-year ended December 31, 2023, was PKR (20.03) million, compared to PKR (31.50) million for the same period last year.
- 📉 Loss per share (basic and diluted) decreased to PKR (2.08) from PKR (3.28) in the prior year’s corresponding period.
- ❗ Auditors have expressed an adverse opinion on the company’s going concern status.
- 📉 Operating loss for the half-year was PKR (19.88) million, compared to PKR (26.45) million last year.
- ⚠️ Finance costs amounted to PKR (4.70) million, compared to PKR (7.35) million in the same period last year.
- ✅ Other income totaled PKR 2.53 million for the half-year.
- 📉 Loss before taxation was PKR (22.04) million compared to PKR (33.80) million.
- ⬆️ Deferred taxation showed income of PKR 2.01 million compared to PKR 2.29 million.
- 📉 Net cash inflow from operating activities was PKR 0.35 million compared to an outflow of PKR (3.85) million.
- ❗ The company has significant accumulated losses of PKR (880.93) million as of December 31, 2023.
- ⚠️ Total liabilities exceed total assets.
🎯 Investment Thesis
Given the adverse auditor opinion, persistent losses, negative equity, and operational challenges, a SELL recommendation is warranted. The company’s financial health is severely compromised, indicating a high risk of further value erosion. The current state suggests that the company may not be able to continue as a going concern.
Disclaimer: AI-generated analysis. Not financial advice.