Faisalabad: Kohinoor Mills Limited has released its interim financial statements for the quarter ending September 30, 2024, with results showing significant reductions in net profits and overall sales, according to the directors' review.

During the first quarter, the company's sales reached 7.02 billion rupees, a decline from the 7.57 billion rupees reported in the corresponding period last year. The gross profit also fell to 929 million rupees from 1.52 billion rupees. Net profit plummeted dramatically to 10.8 million rupees, earning 0.21 rupees per share, compared to 382.5 million rupees or 7.51 rupees per share in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the Weaving Division of Kohinoor Mills saw substantial changes with the replacement of 258 old looms and the addition of 14 new state-of-the-art looms and ancillary equipment during the last financial year, signaling the company's focus on innovation and operational improvement. However, the division continues to face challenges in a tough industry environment.

The Dyeing Division, amidst global retail challenges including rising operational costs and supply chain disruptions, managed to maintain its turnover at 4.50 billion rupees, slightly down from 4.53 billion rupees last year. The company adopted a comprehensive strategy focusing on cost management and process innovation to navigate these difficulties.

The Genertek Division was affected by rising natural gas prices and increased electricity tariffs, which have impacted profit margins. The division has been working towards enhancing energy efficiency and shifting towards renewable energy sources to mitigate the impact of higher energy costs.

Looking forward, the directors highlighted several external and internal challenges including global economic uncertainties and domestic policy changes. Notably, the shift from the Final Tax Regime to the Normal Tax Regime in Pakistan's federal budget for 2024-25 will impose additional tax burdens on the export sector, potentially affecting profitability.

Despite these challenges, Kohinoor Mills is optimistic about the future, banking on improved global economic conditions and internal measures to enhance operational efficiency. The board expressed gratitude towards shareholders, financial partners, and employees for their support and dedication during these challenging times.