Karachi: Premium Textile Mills Limited, a prominent player in the textile industry, has reported a decrease in profit for the quarter ending September 30, 2025. The company's financial performance, as approved by its Board of Directors in a meeting on October 21, 2025, reflects a challenging period marked by reduced sales and increased financial costs.
For the first quarter of the fiscal year, Premium Textile Mills recorded net sales of 5.87 billion rupees, a significant drop from the 7.83 billion rupees reported during the same period in 2024. This represents a very large or significant move in sales, indicative of the current market pressures affecting the textile sector.
The company's gross profit also declined to 807.96 million rupees from 1.12 billion rupees in the previous year. Operating profit stood at 546.76 million rupees, down from 872.81 million rupees, primarily due to increased administrative expenses and distribution costs.
Finance costs were another area of concern, amounting to 371.22 million rupees compared to the previous year's 663.26 million rupees, contributing to the overall decrease in profitability. Consequently, profit before levies and taxation was recorded at 182.93 million rupees, while profit after taxation fell to 65.01 million rupees from 101.09 million rupees in the prior year.
Earnings per share for the period dropped to 10.55 rupees from 16.40 rupees, reflecting the overall decline in financial performance.
According to information available from the Pakistan Stock Exchange (PSX), the company's stock performance may be affected by these financial results, which do not include any cash dividend, bonus shares, or right issue, as communicated by the company.
On the balance sheet, total assets as of September 30, 2025, were valued at 26.86 billion rupees, a decrease from 29.46 billion rupees as of June 30, 2025. Non-current assets stood at 14.25 billion rupees, while current assets were 12.61 billion rupees. The company's equity and liabilities were reported at 8.81 billion rupees and 18.05 billion rupees, respectively.
Despite the challenging quarter, Premium Textile Mills generated 2.80 billion rupees in net cash from operating activities, a rebound from the negative cash flow experienced in the same quarter of the previous year. However, net cash used in investing and financing activities was 379.70 million rupees and 1.85 billion rupees, respectively, resulting in a net increase in cash and cash equivalents of 565.36 million rupees by the end of the period.
As the textile industry navigates an uncertain economic landscape, Premium Textile Mills continues to focus on strategic adjustments and operational efficiencies to bolster its financial health and market position.