Karachi: Blessed Textiles Limited has reported a significant reduction in its financial losses for the nine months ending March 31, 2025, despite ongoing economic challenges. The company recorded a loss after tax of PKR -122.02 million compared to a loss of PKR -1.37 billion in the same period the previous year. Notably, the company achieved a profit of PKR 26.21 million in the third quarter, spanning January to March 2025.
The loss per share for the nine-month period stood at PKR -18.97, an improvement from the PKR -212.25 recorded in the corresponding period in 2024. The break-up value of the share was PKR 1,237.65 as of March 31, 2025, slightly down from PKR 1,256.62 on June 30, 2024. The current ratio as of March 31, 2025, was 1.33, compared to 1.38 in June 2024.
The board of Blessed Textiles Limited remains cautious of external factors such as the US-China tariff conflict and border tensions with India. Despite these challenges, they express optimism about returning to profitability in the near future and delivering sustainable value to shareholders.
According to information available from the Pakistan Stock Exchange (PSX), the textile sector is categorized under the designated market category of manufacturing, which plays a crucial role in the country's economy. Pakistan's textile exports have shown a 9.38 percent increase, reaching $13.61 billion from July 2024 to March 2025, compared to $12.45 billion in the same period the previous year, as per data from the Pakistan Bureau of Statistics.
Despite the rise in exports, the sector grapples with increased imports of raw materials such as cotton and yarn, attributed to high energy costs that have made domestic production less competitive. Additionally, disparities in sales tax between local and imported inputs under the Export Facilitation Scheme have hindered potential foreign currency earnings.
The industry faces further challenges with high electricity tariffs, currently around 12 cents per kWh, significantly higher than regional competitors. A grid transition charge is set to increase to 20 percent over the next 18 months, compounding the existing financial burdens on the sector. Moreover, gas tariffs have reached punitive levels, and the manufacturing sector is unprepared for a shift to alternative power sources.
Exporters are also contending with a disproportionate corporate income tax structure, including a 1 percent adjustable advance minimum turnover tax and an additional super tax, impacting the already low-margin textile businesses.
Industry analysts highlight the critical need for reforms to address business inefficiencies and establish a more investor-friendly environment to unleash Pakistan's economic potential. The survival of the spinning industry is vital to support the local cotton economy, which channels significant financial resources to rural communities, impacting vulnerable segments of society.
In conclusion, while Blessed Textiles Limited has demonstrated resilience with improved quarterly performance, the broader textile industry continues to navigate complex economic challenges. The board acknowledges the contribution of its employees, stakeholders, and government authorities for their continued support.