Karachi: Dewan Khalid Textile Mills Limited, a key player in Pakistan's textile industry, has released its half-yearly financial report for the period ending December 31, 2024. The report, dated August 13, 2026, offers a glimpse into the ongoing challenges faced by the company due to economic pressures and adverse industry conditions.
The textile sector, a significant component of Pakistan's economy, contributing approximately 60 percent to national exports and employing 40 percent of the labor force, has been grappling with numerous challenges. The sector's struggles have been exacerbated by the discontinuation of regionally competitive energy pricing, high interest rates, and delayed government refunds, which have collectively driven up production costs and strained cash flows.
Dewan Khalid Textile Mills has not been immune to these challenges. According to the report, the company's operational sales were nil for the period due to a prolonged shutdown of its manufacturing operations, which commenced in August 2016. The company's auditors have expressed concerns about its ability to continue as a going concern, citing defaults on restructured liabilities and the non-provisioning of mark-up.
The company's management remains hopeful about resuming operations. It is currently in discussions with its lenders to restructure its liabilities without markup. The successful completion of this process is expected to facilitate the company's return to operational status.
In terms of financial performance, the company reported an accumulated loss of 918.68 million rupees as of December 31, 2024, compared to 905.10 million rupees on June 30, 2024. The company's total equity and liabilities stood at 729.74 million rupees, a decrease from 745.42 million rupees in the previous reporting period. The report also highlighted a significant move in deferred taxation, which decreased from 33.33 million rupees to 31.55 million rupees, indicating a moderate move.
The financial statements also revealed that Dewan Khalid Textile Mills has a surplus on revaluation of property, plant, and equipment amounting to 661.18 million rupees. Current liabilities, including trade and other payables, short-term borrowings, and overdue portions of syndicated long-term loans, totaled 712.17 million rupees.
According to information available from the Pakistan Stock Exchange (PSX), the company's shares have been under scrutiny due to its ongoing financial challenges. The company's directors have emphasized the importance of overcoming these challenges to restore shareholder value and ensure the company's long-term viability.
As the textile industry continues to navigate a complex economic landscape, the future of Dewan Khalid Textile Mills remains uncertain, hinged on successful liability restructuring and strategic adjustments to the prevailing economic conditions.