Karachi: Artistic Denim Mills Limited has released its financial results for the first quarter ended September 30, 2024, reporting modest sales growth amidst significant cost-related challenges that impacted its profit margins.

In the quarter under review, the company achieved net sales of PKR 5.26 billion, marking a slight increase of 2.90% compared to PKR 5.10 billion in the corresponding period last year. However, gross profit decreased significantly to PKR 391.78 million from PKR 699.80 million in 2023, primarily due to rising energy costs which escalated production expenses. According to information available from the Pakistan Stock Exchange (PSX), the financial costs for the firm also decreased by 50.48% to PKR 157.37 million, aiding the overall financial position despite the lower gross margins.

The net profit after tax saw a decline, settling at PKR 5.10 million compared to PKR 175.73 million last year, with earnings per share plummeting to PKR 0.06 from PKR 2.09. This decrease underscores the pressing challenges in cost management and competitive market conditions affecting the company's profitability.

Looking forward, the textile industry is facing substantial pressures due to declining global demand and the recent shifts in government policies impacting export operations. Despite these hurdles, Artistic Denim Mills remains committed to operational efficiency and financial stability, supported by diversified operations and ongoing cost transformation initiatives.

This year, the company has also embarked on a green energy project, initiating a 2 MW solar energy project to reduce energy costs and contribute to sustainability. The project has already commenced with the opening of a letter of credit, highlighting the company's proactive steps towards adopting renewable energy sources.

The Board of Directors and management expressed their gratitude towards the company’s stakeholders for their continued support and confidence, which remains crucial in navigating the challenging market landscape.