Karachi: Asim Textile Mills Ltd. has reported a substantial increase in profitability for the first quarter ending September 30, 2024, according to the company's latest financial disclosures to the Pakistan Stock Exchange.

The Faisalabad-based textile company recorded net sales of Rs 531.31 million for the quarter, a significant rise from Rs 300.55 million during the same period last year. The cost of sales stood at Rs 509.99 million, leading to a gross profit of Rs 21.31 million, a recovery from a gross loss of Rs 55.99 million reported in the previous year.

Operating expenses for the quarter were notably reduced, totaling Rs 9.09 million compared to Rs 10.72 million in 2023, with administrative expenses taking the largest cut from Rs 10.60 million last year to Rs 8.70 million this year. The company's profit from operations turned around dramatically to Rs 11.31 million, reversing a loss of Rs 66.55 million from the previous year. According to information available from the Pakistan Stock Exchange (PSX), these results mark a crucial turnaround in the company's operational efficiency and financial health.

Finance costs were slightly higher at Rs 0.11 million, but other income increased to Rs 6.46 million. The net profit before tax also improved significantly to Rs 10.95 million, compared to a loss before tax of Rs 63.07 million in the previous year. After accounting for income tax expenses, the net profit for the period stood at Rs 11.55 million, with earnings per share at Rs 0.76, a stark contrast to a loss per share of Rs 2.49 last year.

The financial results reflect a robust recovery and growth trajectory for Asim Textile Mills, as it continues to navigate the challenges of the textile industry with effective cost management and improved operational strategies.