Lahore: J.K. Spinning Mills Limited has disclosed its un-audited financial results for the half-year ending December 31, 2024, reflecting a modest increase in sales revenue but a notable decline in profit margins. The company reported sales of Rs. 21,147.38 million, marking a 3.51% increase from the Rs. 20,430.52 million in the corresponding period of the previous year.

Despite the revenue growth, the company's profit after tax fell to Rs. 302.69 million from Rs. 510.95 million in the same period last year, resulting in a decrease in earnings per share from Rs. 4.99 to Rs. 2.96. The decline has been attributed to rising energy costs, expensive raw materials, and heavy taxation, which continue to challenge the profitability of the Pakistani textile industry.

The financial figures underscore the pressure faced by the industry, with gross profit decreasing from Rs. 2,742.38 million to Rs. 2,476.57 million. Operating expenses, net of other income, rose to Rs. 996.92 million from Rs. 884.52 million, impacting the profit from operations, which decreased from Rs. 2,016.03 million to Rs. 1,776.82 million.

Finance costs saw a slight reduction from Rs. 1,225.58 million to Rs. 1,138.15 million, but could not offset the overall decline in profitability. According to information available from the Pakistan Stock Exchange (PSX), the company's financial performance reflects broader industry challenges, including intensified regional competition and fluctuating market conditions.

The board of directors has opted not to recommend any interim dividend amid the volatile market conditions. The company remains focused on navigating these challenges by ensuring a profitable customer mix and upholding sustainable business practices.

The outlook for the Pakistani textile sector remains uncertain, with the industry standing at a critical juncture. J.K. Spinning Mills' management is actively working to mitigate potential business risks, maintaining a strategic focus on growth and adaptability in the current economic climate.