Karachi: Hamid Textile Mills Limited experienced a substantial financial downturn for the fiscal year ended June 30, 2024, as revealed in the latest financial statements.

The company reported a gross profit of PKR 11.25 million for 2024, a slight increase from PKR 10.40 million in 2023. However, this marginal growth in gross profit was overshadowed by substantial rises in distribution and administrative expenses, which collectively surged to PKR 35.84 million, leading to an operating loss of PKR 24.60 million for the year, compared to a loss of PKR 17.39 million in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), Hamid Textile Mills' net sales rose to PKR 771.55 million from PKR 563.53 million a year earlier. Despite the increase in sales, the cost of sales also grew significantly, totaling PKR 760.30 million, which severely constrained the gross profit margins.

The financial stress was compounded by an overwhelming taxation expense of PKR 1.67 million, a stark contrast to the tax income of PKR 24.78 million reported in 2023. Consequently, the net loss for the year stood at PKR 26.24 million, a drastic reversal from a net profit of PKR 7.39 million the previous year.

Earnings per share also reflected the company's struggles, with a loss per share of PKR 1.98, compared to an earnings per share of PKR 0.56 in 2023. This marks a significant downturn in the company's profitability, indicating severe underlying financial challenges.

Hamid Textile Mills Limited's financial outcomes for 2024 highlight a challenging year, with increased operational costs and adverse tax adjustments severely impacting its profitability.