Pakistan Cables Returns With Rs.166 Million Profit, Skips Dividend

KARACHI: Pakistan Cables Limited climbed out of a loss-making year. The company posted a Rs166.2 million profit for the year ended June 30, 2026. Shareholders, though, won't see a cash payout from it the board declared no dividend and no bonus shares. The filing confirms nil cash dividend, nil bonus or right shares, and no other entitlement.

The swing itself is worth sitting with. Pakistan Cables lost Rs280.6 million in FY2025. A year later, earnings per share moved to Rs3.05 from a loss per share of Rs5.15. Why no dividend, then? The cash flow statement answers that: operating activities burned through roughly Rs2.4 billion in cash during the year, a sharp contrast to the Rs166.2 million sitting on the profit line.

Profit Returns, Cash Doesn’t

Revenue rose to Rs33.8 billion from Rs29.1 billion, about 16 percent growth that pushed gross profit to Rs3.51 billion from Rs3.03 billion. But gross margin barely budged, holding around 10.4 percent. Higher sales did the work here, not margin expansion. Marketing, selling and distribution costs climbed to Rs1.25 billion from Rs974 million. Administrative expenses rose to Rs461 million from Rs373 million. Both ate straight into whatever margin gains the revenue jump might have delivered.

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Two line items outside core operations carried real weight in this turnaround. Other income jumped nearly 89 percent, to Rs661.7 million from Rs350.8 million. The company's share of profit from its associate leapt to Rs419.8 million from just Rs44.9 million a year earlier. Income outside the core operating line played a major role here, while operating costs kept squeezing the underlying business.

Finance costs eased slightly, down to Rs2.27 billion from Rs2.43 billion some relief on a balance sheet still carrying Rs4.9 billion in secured long-term financing and Rs13.3 billion in short-term borrowings. Total liabilities fell to Rs27.3 billion from Rs28.1 billion. Total equity strengthened to Rs10.2 billion from Rs9.5 billion.

Cash Flow Under Pressure

Cash still tells a mixed story. Despite the operating drain, Pakistan Cables closed the year with a Rs360.6 million net increase in cash and cash equivalents. Investing activities brought in Rs796.1 million, with Rs885.1 million of that coming from assets classified as held for sale. Financing activities added another Rs1.96 billion. Income tax expense hit Rs422.1 million against a credit of Rs106.9 million the year before taking a real bite out of pre-tax profit of Rs588.3 million.

Pakistan Cables has cleared an important milestone: a return to profitability. What comes next is harder. Operating cash flow remains deeply negative, short-term borrowings sit above Rs13 billion, and turning accounting profit into real, sustainable cash may prove a tougher fight than simply escaping the red.