Lahore: Kohinoor Textile Mills Limited has released its unaudited financial results for the nine months ending March 31, 2025, indicating a significant improvement in the third quarter compared to the previous quarter of the financial year 2024-25. This improvement was achieved despite adverse conditions in the yarn market that affected the performance of the Spinning divisions. The enhancement was primarily driven by robust performances in both the Home Textiles and Weaving divisions.
The company's Directors' Review highlights a continuing decrease in finance costs due to falling interest rates, which helped mitigate the impact of rising gas prices. While the Spinning divisions experienced a slight dip in results due to a considerable decline in revenue from foreign yarn imports, the profitability drop was minimal. Kohinoor's strategic investments, such as an additional 5 MW of solar energy installation at its Spinning sites, are expected to further reduce power costs by the end of the financial year.
The Weaving division reported improved results over the second quarter, with ongoing cost-control measures and the production of complex fabric constructions for diverse markets. The division also benefited from a completed short-term investment in T-bills, contributing to an increase in other income.
The Home Textiles division saw a substantial increase in both revenue and profitability, driven by a focus on high-quality, value-added goods. However, the division faces potential uncertainties due to possible tariff changes affecting exports to the US.
According to information available from the Pakistan Stock Exchange (PSX), Kohinoor Textile Mills Limited’s sales during the reviewed period rose by 5% to Rs. 44,938 million, up from Rs. 42,947 million in the previous year. The cost of sales increased by 6% to Rs. 37,742 million, resulting in a gross profit of Rs. 7,196 million, slightly lower than the previous year's Rs. 7,357 million.
Despite these challenges, the company reported an operating profit of Rs. 5,692 million, an improvement from Rs. 5,157 million in the prior year. After-tax profit stood at Rs. 2,009 million, up from Rs. 1,762 million, with earnings per share increasing to Rs. 7.46 from Rs. 6.44 for the corresponding period last year.
Moving forward, Kohinoor remains committed to sustainability initiatives, including the ongoing solar expansion and a new biofuel boiler expected to be operational before the financial year's end. The company is also exploring water recycling projects and battery technology to reduce reliance on fossil fuels.
While the Directors express cautious optimism about the future, they acknowledge potential risks from global economic conditions and trade uncertainties. Nonetheless, they express gratitude to the company's stakeholders and commend the dedication of their employees across all divisions.