Lahore: Mubarak Textile Mills Limited, a prominent player in Pakistan's textile sector, has announced its financial results for the fiscal year ending June 30, 2024. The company reported a pre-tax profit of PKR 0.116 million, a significant decrease from the PKR 0.391 million recorded in the previous year.
The Lahore-based firm disclosed a net loss of PKR 1.959 million for the year, as compared to a loss of PKR 1.514 million in 2023. This downturn is primarily attributed to the ongoing crises in the industry, including persistent energy issues that have hampered production capabilities. According to information available from the Pakistan Stock Exchange (PSX), Mubarak Textile Mills has struggled to maintain viable operations, leading to reduced business activities throughout the year.
Despite the adverse conditions, the company's management is actively pursuing new business opportunities to improve profitability. Plans are underway to initiate the stitching of knitwear garments on a conversion basis, which is expected to commence shortly. This strategic shift is aimed at leveraging the existing infrastructure and expertise to tap into new revenue streams.
The Board of Mubarak Textile Mills held four meetings during the year to address these challenges and strategize on the future course of action. All board members, including Mr. Abdul Jabbar and Mrs. Sana Khalid, participated actively in these discussions, reflecting a unified approach towards corporate governance and strategic planning.
The company's statement of financial position shows a share capital of PKR 54.00 million with accumulated losses increasing to PKR 87.001 million from PKR 85.371 million the previous year. The financial statements also highlight the significant role of rental income from property, which has become a crucial component of the company’s revenue amidst declining operational activities.
Mubarak Textile Mills' management remains optimistic about the future, focusing on cost-effective strategies and exploring potential markets for knitwear products. The introduction of new business models is expected to provide the necessary impetus for recovery and growth in the forthcoming fiscal periods.