Faisalabad: Amtex Limited, a leading textile firm in Pakistan, showcased significant growth in its financial performance for the year ended June 30, 2024, despite facing a myriad of operational challenges, including increased utility costs and economic instability.
Amtex reported a net sales revenue of 2,793.10 million Rupees for 2024, a notable rise from 1,692.00 million Rupees in the previous year. This growth is primarily attributed to the company’s strategic shift towards the Direct to Retail (DTR) model and expansion in the high-value home textile sector. According to information available from the Pakistan Stock Exchange (PSX), Amtex has leveraged its vertically integrated operations to enhance product offerings and penetrate new markets, particularly in the EU and USA.
The cost of sales stood at 2,359.00 million Rupees, with the gross profit reaching 434.00 million Rupees, marking a significant improvement from the 125.00 million Rupees recorded in 2023. The operating profit followed suit, increasing to 280.00 million Rupees from 235.00 million Rupees.
However, Amtex’s net profit after taxation saw a decrease to 92.00 million Rupees down from 138.00 million Rupees last year. This decline is partially due to higher finance costs, which surged as the company grappled with increased borrowing to fund capital expenditures, including investments in sustainable energy solutions like solar plants.
The balance sheet reflects a strengthened asset base with total assets amounting to 3,685.00 million Rupees, compared to 3,310.00 million Rupees in the preceding year. This includes significant investments in property, plant, and equipment, aimed at modernizing facilities and expanding production capacity.
Despite these gains, Amtex faces liquidity pressures, evident from its short-term borrowings which tallied at 5,167.00 million Rupees. The company’s long-term financial health remains a concern with a negative working capital situation and a complex debt structure that necessitates careful management.
As Amtex continues to navigate through economic uncertainties and operational adjustments, its focus remains on optimizing the DTR model and enhancing shareholder value through strategic initiatives and robust governance practices.