Karachi: The directors of Bhanero Textile Mills Limited have released their unaudited condensed interim financial statements for the nine months ending March 31, 2025. The company has reported a profit after tax of PKR 87.219 million, a notable decrease from PKR 142.949 million reported in the same period last year. Earnings per share have also dropped from PKR 47.05 to PKR 28.68.
The break-up value of the company's share has seen a slight increase, standing at PKR 3,601.76 as of March 31, 2025, compared to PKR 3,572.26 on June 30, 2024. The current ratio remains unchanged from the previous financial year at 1.54.
The broader economic landscape in Pakistan shows signs of recovery, with headline inflation decreasing to 0.7 percent in March 2025, down from 1.5 percent in February 2025. Despite this, the Monetary Policy Committee has opted to maintain the policy rate at 12 percent, citing risks from price volatility. Foreign reserves have more than doubled over the past year, significantly bolstered by record-high remittances from expatriates, which reached US$ 4.1 billion in March 2025.
According to information available from the Pakistan Stock Exchange (PSX), Pakistan's textile exports have increased by 9.38 percent, reaching US$ 13.618 billion during the first nine months of the current fiscal year, ending March 2025. On a month-on-month basis, textile exports rose by 6.27 percent, amounting to US$ 2.646 billion in March 2025.
The Asian Development Bank projects a 2.5 percent growth in Pakistan's real GDP for the fiscal year 2025-26. This positive outlook is attributed to strict macroeconomic policies, key economic reforms, and the commencement of the IMF Extended Fund Facility (EFF) arrangement in October 2024.
Despite these positive indicators, the textile sector faces significant challenges, including a high borrowing cost and an increase in energy prices. The imposition of a levy on gas and RLNG consumption by captive power plants further exacerbates the sector's difficulties in competing globally. Additionally, the United States has imposed a 29 percent tariff on Pakistan's textile exports, which could have a profound impact on the industry given the US's role as a major market for Pakistan's textiles.
The Pakistan Cotton Ginners Association has reported a substantial 34 percent decline in cotton production, with only 5.5 million bales harvested by February 28, 2025, compared to 8.4 million bales in the corresponding period last year. This decline poses a severe challenge to the textile industry, which relies heavily on domestic cotton supplies.
To enhance competitiveness and global reach, the textile sector is encouraged to focus on improving quality, diversifying products, adopting sustainable practices, and leveraging technology. Strategies such as shifting from cotton to clothing, marketing value-added goods, and fostering collaboration between businesses, government, and academia are seen as vital for boosting exports.
The board of Bhanero Textile Mills Ltd. has expressed gratitude to its employees and financial institutions for their continued support amid these challenging times.