Karachi: Janana De Malucho Textile Mills Limited has reported a substantial financial setback in its condensed interim financial statements for the third quarter and nine-month period ending on March 31, 2025. The company recorded a loss amounting to Rs. 595.12 million, a significant increase from the Rs. 150.40 million loss reported in the same period last year.

The decline in profitability is primarily attributed to reduced demand and sales prices for yarn, along with increased production costs, particularly energy prices. The company's production activities were temporarily halted from October 2024, leading to a decline in yarn sales by Rs. 3.045 million compared to the previous year. This decision was part of a strategic move to mitigate operational losses triggered by unfavorable market conditions.

The Pakistani textile sector, a cornerstone of the country's economy, is currently facing multiple challenges. According to information available from the Pakistan Stock Exchange (PSX), factors such as high power tariffs, increased yarn imports from China, lower demand, and high tax rates have adversely impacted the sector, especially affecting the spinning industry. The influx of imported yarn has suppressed local demand and prices, complicating cost recovery for local spinning mills.

Furthermore, the industry is grappling with high energy costs and supply limitations, particularly regarding gas and electricity. This rise in energy prices has imposed a significant financial burden on textile manufacturers, undermining their ability to sustain operations and remain competitive in domestic and foreign markets.

Despite these hurdles, the company remains cautiously optimistic about the future. The stability of the exchange rate and relatively low inflation, coupled with decreased financing costs due to lower policy rates, are seen as positive developments that could help reduce working capital expenses. The company anticipates that governmental and stakeholder interventions, such as reducing energy tariffs, limiting yarn imports, adjusting tax structures, and enhancing export facilitation, could provide much-needed relief to the sector.

The Board of Directors extended their gratitude to stakeholders, including bankers, shareholders, customers, and employees, for their unwavering support. The Board also acknowledged the dedication of the company's senior management and staff, expressing hope for their continued commitment and cooperation in navigating these challenging times.