Karachi: Crescent Textile Mills faced a challenging first quarter for the fiscal year 2025, experiencing a significant decline in volume due to depressed market conditions, despite improved export prices that supported gross margins. The details were disclosed in the company's directors’ report for the quarter ending September 30, 2024.

The textile company reported a loss after tax which decreased by 26% compared to the same period last year, attributing the relative improvement to better gross margins amidst lower sales revenues. Financial costs provided some relief following a reduction in the Policy Rate by the State Bank of Pakistan (SBP), though the higher KIBOR rate offset much of this benefit. The report anticipates more substantial financial improvements in the second quarter due to the effects of two rate cuts implemented by the SBP during the first quarter.

According to information available from the Pakistan Stock Exchange (PSX), other expenses for the quarter included administrative expenses of PKR 120 million and distribution costs of PKR 185 million, with finance costs reaching PKR 380 million. Despite these challenges, the company managed to generate other income of PKR 57 million.

Future outlooks remain cautiously optimistic as the company expects an improved economic environment and stable PKR/USPKR exchange rates to positively influence performance. Efforts to control input costs and improve capacity utilization, along with the early realization of GST refunds, are anticipated to have beneficial impacts on future operations.

The Board of Directors expressed gratitude towards the management and stakeholders, including vendors, banks, and employees, for their contributions during a difficult period. The detailed financial performance demonstrates ongoing efforts to navigate through economic challenges while seeking avenues for cost reduction and efficiency improvements.