Multan: Despite facing a historically tough year for the textile sector in Pakistan, Allawasaya Textile and Finishing Mills Limited announced significant revenue growth in their latest financial report for the year ended June 30, 2024. The company’s revenue reached Rs. 6.12 billion, marking a substantial increase from Rs. 3.78 billion in the previous year.
In a detailed breakdown, the Multan-based textile giant detailed various financial and operational hurdles while managing to significantly boost production and sales. The report highlights a gross profit of Rs. 279.73 million for 2024, up from Rs. 144.57 million in 2023, showing a resilient performance amid escalating costs and market pressures. According to information available from the Pakistan Stock Exchange (PSX), the management’s strategic initiatives and operational efficiency were key to navigating the increased costs of raw materials and energy.
Despite these gains, Allawasaya Textile faced a net loss of Rs. 245.02 million, deeper than the loss of Rs. 164.77 million reported last year, driven by high finance costs and a challenging macroeconomic environment. The textile sector, which accounts for a significant portion of Pakistan’s exports, has been struggling with high energy prices and a global slowdown in consumer demand.
Furthermore, the company decided not to distribute dividends for the year due to the financial losses incurred. Allawasaya Textile also continued to uphold stringent compliance with corporate governance practices, maintaining certifications like ISO 9001:2015 for quality management and ISO 14001:2015 for environmental management, reflecting their commitment to operational excellence and sustainability.
In her report, Mrs. Nusrat Jamil, Chairperson of the Board, expressed gratitude to all stakeholders for their support during these challenging times and highlighted the company’s efforts to overcome the operational challenges faced by the sector. The company’s focus remains on optimizing resource allocation and maintaining a robust internal control system to safeguard financial health and ensure sustainable growth.