Karachi: Feroze 1888, a leading textile manufacturer, has reported a downturn in its financial performance for the quarter ending September 2024, amidst a broader economic landscape showing mixed signals of recovery and challenges.
The company disclosed its unaudited financial statements, highlighting a significant drop in net sales and profits compared to the same period last year. Sales for the quarter amounted to Rs. 15.70 billion, down by 11.3% from Rs. 17.70 billion in September 2023. Gross profit fell sharply to Rs. 2.23 billion from Rs. 3.70 billion, while profit before taxation was Rs. 276.88 million, a stark decline from Rs. 1.28 billion reported last year.
According to information available from the Pakistan Stock Exchange (PSX), the company’s profit after taxation also plummeted to a mere Rs. 2.69 million from Rs. 1.00 billion, with earnings per share dropping to Rs. 0.01 from Rs. 2.52. The downturn is attributed to rising energy costs, increased labor wages, and higher finance charges, impacting overall profitability.
Despite the challenging quarter, Feroze 1888 remains optimistic about the broader economic conditions in Pakistan. The country has shown signs of economic stabilization with a decrease in inflation to 6.9% in September 2024 from 31.4% a year earlier. The current account deficit has also been contained, aided by robust remittance inflows and a significant boost in export earnings, primarily from the textile sector which saw a 9.51% increase in exports to USPKR4.52 billion for the first quarter of FY2025.
Looking ahead, the company anticipates a cautious recovery trajectory, in line with the World Bank’s growth forecast of 2.8% for FY2024-25. However, the economic outlook remains susceptible to global financial conditions, particularly the potential impacts of high global energy prices and geopolitical tensions that could affect trade dynamics.
Feroze 1888 extends its gratitude to its shareholders, employees, customers, and business partners for their continued support during these challenging times, emphasizing a collective effort to navigate the evolving economic landscape.