Faisalabad: Ashfaq Textile Mills Ltd. disclosed a significant annual financial report for the fiscal year ending June 30, 2024, which reveals a complex financial picture marked by increased sales but continued losses. The company reported a 35.91 percent increase in sales totaling Rs. 456.65 million, up from Rs. 335.98 million in 2023. Despite the sales boost, the company faced a gross profit loss of Rs. 36.39 million compared to a profit of Rs. 85.13 million the previous year.
According to information available from the Pakistan Stock Exchange (PSX), Ashfaq Textile’s net losses before and after tax also shrank, reporting Rs. 69.76 million and Rs. 57.85 million respectively, reflecting improvements from the 2023 figures of Rs. 113.85 million and Rs. 79.78 million. The earnings per share fell to Rs. 1.24 from Rs. 1.72.
The company attributes its financial strain to the high costs of utilities, particularly electricity, which have offset the gains from increasing sales. The report highlights an optimistic outlook from the management, expecting governmental policy shifts to lower energy costs, which may enhance profitability in the near future.
Despite these challenges, the company decided against recommending any dividends or bonuses for the year, focusing instead on navigating through its financial hardships. On the marketing front, Ashfaq Textile is concentrating on strengthening ties with domestic and international markets for woven fabrics, aiming to stay ahead of the competition as government policies evolve.
In matters of corporate governance, the report notes adherence to the best practices as required by the Pakistan Stock Exchange. It mentions that the board of directors met four times during the year and re-elected its current auditors, RSM Avais Hyder Liaquat Nauman, for another term.
Ashfaq Textile also emphasizes its commitment to corporate social responsibility, having contributed Rs. 700,000 to the ‘Faisalabad Liver Foundation Trust’ for supporting free medical treatments and liver-related lab tests for deserving patients.
The company continues to navigate through significant risks including adverse movements in foreign exchange and commodity prices, alongside challenges in taxation and market distribution.