Lahore: The directors of Ghazi Fabrics International Limited have released the financial statements for the half-year ending December 31, 2024, revealing a significant reduction in losses attributed to strategic production cutbacks. The company, operating in a challenging economic environment, reported a gross loss of Rs. 164.64 million, compared to a loss of Rs. 157.26 million in the corresponding period of the previous year. The loss after tax decreased to Rs. 216.94 million from Rs. 337.38 million in the same period last year.

The textile sector, facing increased costs of raw materials and utilities, compelled the company to discontinue production operations in its Spinning and Weaving divisions. This decision, aimed at reducing the loss after taxation and alleviating cash flow burdens, resulted in diminished production activity and sales. The directors highlighted that these measures were crucial given the competitive nature of the global textile industry and the higher production costs in comparison to regional competitors.

Sales for the period reached Rs. 566.06 million, a significant drop from Rs. 2.02 billion in the previous year. The company reported a loss per share of Rs. 6.65, an improvement from Rs. 10.34 in the corresponding period. Administrative expenses were recorded at Rs. 35.87 million, while selling and distribution costs amounted to Rs. 4.81 million. Other operating expenses stood at Rs. 7.43 million.

According to information available from the Pakistan Stock Exchange (PSX), the financial highlights of this half-year period reflect the company's strategic adjustments in response to the economic challenges within the textile sector. The operating loss was reduced to Rs. 212.75 million from Rs. 252.90 million, with other income contributing Rs. 5.07 million.

Finance costs were significantly lowered to Rs. 1.46 million from Rs. 61.11 million in the corresponding period. The loss before taxation was Rs. 209.14 million, a notable decrease from Rs. 312.68 million in the previous year. The taxation cost for the period amounted to Rs. 7.80 million.

The report underscores the company's efforts to navigate a very challenging economic outlook, particularly for the local textile industry, as it grapples with global competition and elevated production costs.