Karachi: Ahmad Hassan Textile Mills Limited has reported a substantial increase in revenue for the nine months ending March 31, 2025, as disclosed in its latest financial statement. The company's net sales rose to 4.43 billion rupees, marking a 15% increase from the 3.84 billion rupees reported in the corresponding period last year.
According to the financial results, the gross profit reached 339.74 million rupees, up from 211.30 million rupees, resulting in a gross profit ratio of 7.67%, compared to 5.50% the previous year. The profit before taxation stood at 113.67 million rupees, while profit after taxation amounted to 61.66 million rupees, reflecting an improvement from the previous year's figures of 69.24 million rupees and 37.66 million rupees, respectively.
The improvement in financial performance is attributed to several factors, including the procurement of yarn at relatively cheaper rates, reduced electricity costs due to an enhanced solar system capacity, and lower bank mark-rates. Distribution costs remained steady, while administrative expenses saw a slight increase of 15%, primarily due to inflation.
According to information available from the Pakistan Stock Exchange (PSX), Ahmad Hassan Textile Mills Limited's earnings per share increased to 7.28 rupees from 4.45 rupees. Despite the economic challenges posed by the high burden of foreign debts and trade deficits, the company remains optimistic about the textile industry, buoyed by measures to control inflation, stabilize dollar rates, and reduced interest rates by the State Bank of Pakistan.
The imposition of the "Off the Grid (Captive Power Plants) Levy Ordinance, 2025" by the Pakistani government aims to collect a levy from captive power plants on their natural gas consumption. This measure seeks to fulfill an IMF condition and reduce electricity tariffs for other consumers. Additionally, international trade faces challenges such as weaker global demand and geopolitical tensions, with the US temporarily holding a significant increase in tariffs on imports for 90 days.
Pakistani textile exports to the US, which account for 19% of the country's total exports, totaled $3.6 billion in the first seven months of FY2025, with textile and apparel products comprising 79% ($2.8 billion) of this figure. The tariff changes could significantly impact these exports.
To maintain competitiveness, Ahmad Hassan Textile Mills Limited is actively working to reduce controllable costs by focusing on cheaper sources of electricity generation. The company has already commissioned a solar project with a rated capacity of 1,881.7 Kw and is progressing on another project with a capacity of 839 Kw.
Despite rising raw material and input costs, the company's management is committed to improving sales, reducing business costs, and maintaining profitability. The directors express appreciation for the efforts of the company's workers and staff, as well as gratitude to shareholders and financial institutions for their continued support.