Karachi: Nagina Cotton Mills Limited (NCML), a prominent player in the textile sector, has unveiled its financial performance for the fiscal year 2024-25, highlighting considerable shifts in key financial metrics. The company, which is listed on the Pakistan Stock Exchange Limited, has reported a notable increase in short-term borrowings and a decrease in other financial assets, reflecting strategic responses to market conditions.
According to the financial results disclosed on November 19, 2025, the firm's profit before levies and taxation surged by 42.18%, reaching 442.26 million from the previous year's 311.05 million. This increase was primarily attributed to reduced finance costs coupled with gains from higher other income. However, the profit after tax experienced a significant decline of 34.55%, falling to 50.42 million from 77.02 million. The decrease stems from the recognition of deferred tax expenses and a super-tax charge.
In terms of balance sheet dynamics, NCML reported an 8.29% decrease in long-term finances, with the total amount standing at 4.92 billion, down from 5.36 billion. This reduction was due to scheduled repayments made on long-term debt obligations. Conversely, short-term borrowings saw a very large increase of 307.48%, soaring to 2.80 billion from 688.09 million. This rise is attributed to higher procurement of imported cotton, necessitating increased short-term working capital.
The company's stock-in-trade also experienced a significant growth of 97.97%, reaching 4.64 billion from 2.35 billion, reflecting elevated inventory levels due to increased raw material procurement. Another remarkable change was observed in other receivables, which rose sharply by 446.95% to 66.54 million, primarily due to a payment order issued in favor of the firm by the High Court related to the Sales Gas Compensation refund.
According to information available from the Pakistan Stock Exchange (PSX), NCML's other financial assets witnessed a substantial decline of 85.57%, dropping to 166.69 million from 1.16 billion. This sharp decrease was driven by divestments, likely influenced by a decline in the expected rates of return on those investments.
The company reported a gross profit margin of 8.10% for the year, a minor move from the previous year's 7.89%. The taxation as a percentage of profit before tax increased to 88.60%, up from 75.24%, indicating a big move.
Nagina Cotton Mills Limited, established in 1967, continues to manufacture and sell yarn, holding various certifications including Global Recycled Standard and Organic Content Standard. The company operates with a significant number of employees, totaling 1,109 as of the end of the fiscal year, and maintains a substantial number of spindles at 62,508.
As the textile industry navigates economic challenges, NCML's strategic adjustments in financial management are pivotal, reflecting both the pressures and opportunities within the market.