Karachi: Gatron (Industries) Limited, a key player in the Polyester Filament Yarn (PFY) sector, has released its quarterly financial report for the period ending September 30, 2025. Despite an increase in net sales, the company continues to grapple with substantial losses, driven by market challenges and operational hurdles.
For the third quarter of 2025, Gatron (Industries) Limited reported net sales of Rs.7.24 billion, reflecting a 23% rise from Rs.5.90 billion in the same period of the previous year. This growth was attributed primarily to an uptick in sales of polymer chips/resin. However, the company registered a loss before levies and income tax of Rs.304 million, a notable improvement from the Rs.765 million loss recorded in the corresponding quarter of the previous year. The operating profit for the quarter stood at Rs.44 million, indicating a moderate move in profitability.
A significant challenge faced by the company is the dumping of imported yarn at low prices in the local market. In response, the National Tariff Commission (NTC) in June 2025 imposed final anti-dumping duties ranging from 5.35% to 20.78% on PFY from major Chinese exporters. According to information available from the Pakistan Stock Exchange (PSX), enforcement of these duties was inconsistent during July and August but saw proper implementation by the end of September. This enforcement aims to restore market prices and curb the evasion of over Rs.10 billion in anti-dumping duties from 2017 to 2023.
The company also faces challenges from India's removal of the Bureau of Indian Standards (BIS) exemption for PFY imports, resulting in a drastic reduction of imports from China to less than 10,000 tons per month. This regulatory move by India is seen as a measure to protect local industries from the impact of excess Chinese dumping.
Despite these challenges, Gatron (Industries) Limited remains optimistic about future performance. The company anticipates improvements in subsequent quarters based on the effective collection of dumping duties and strategic cost reductions. However, it continues to operate at reduced capacity due to persistent dumping and elevated energy costs affecting polymer production.
The report also highlighted that the company's subsidiaries, Gatro Power (Private) Limited and G-Pac Energy (Private) Limited, are maintaining normal operations, while Global Synthetics Limited has yet to commence activity. No interim cash dividends were recommended for the quarter, and the loss per share was reported at Rs.3.63.
Gatron (Industries) Limited's financial position as of September 30, 2025, shows shareholders' equity at Rs.10.98 billion, with total assets amounting to Rs.32.08 billion. Despite the current financial strain, the company is focusing on strategic measures to enhance capacity utilization and improve its bottom line in the coming years.