Lahore: Zahidjee Textile Mills Ltd has announced its financial results for the fiscal year ending June 30, 2024, showcasing a significant rise in sales alongside a decline in profitability. According to the company's corporate briefing session, sales for the year reached 37,741.82 million rupees, reflecting an increase from 32,317.37 million rupees in the previous year.

The company's gross profit, however, fell to 1,832.80 million rupees from 2,611.17 million rupees in 2023. Operating profit also declined to 2,934.20 million rupees from 3,161.85 million rupees. The profit before taxation stood at 830.14 million rupees, down from 1,597.29 million rupees in the previous year. According to information available from the Pakistan Stock Exchange (PSX), Zahidjee Textile Mills experienced a decrease in earnings per share to 3.32 rupees from 6.34 rupees in 2023.

The company's net assets employed increased to 16,012.15 million rupees from 15,762.39 million rupees in 2023. The net worth of the company also rose to the same figure of 16,012.15 million rupees, primarily due to an increase in capital reserves and a revaluation surplus.

Current assets were reported at 13,690.83 million rupees, up from 13,194.53 million rupees, and current liabilities at 7,616.69 million rupees, compared to 6,383.55 million rupees in the previous fiscal year. Zahidjee Textile Mills highlighted challenges in the textile sector, citing a continuous drop in the local cotton crop and volatility in cotton prices both domestically and internationally.

Despite these challenges, the company expressed optimism about future growth and expansion plans, contingent on favorable economic conditions. The management has outlined potential major expansion and Balancing, Modernization, and Replacement (BMR) plans in the upcoming period.