Karachi: Hamid Textile Mills Limited has reported a significant increase in sales in its unaudited financial statement for the first quarter ending September 30, 2025. The company's sales rose by 21.67% to Rs. 250.103 million from Rs. 205.562 million in the same period last year. Despite the sales growth, the company reported a net loss after taxation of Rs. 10.095 million, a deterioration from the Rs. 8.693 million loss recorded in the previous year.

The directors highlighted that while the management is focused on optimal operations to cover costs, external environmental factors have increased the cost of business operations. The gross profit for the period was Rs. 5.277 million, up from Rs. 1.974 million in the previous year, indicating a big move in profitability. However, the net loss reflects ongoing challenges, including liquidity issues due to unresolved bank litigation. Consequently, the company's financial facilities with the bank have expired, leaving operational activities reliant on limited internal resources.

According to information available from the Pakistan Stock Exchange (PSX), the company's current assets have decreased to Rs. 534.55 million from Rs. 543.78 million as of June 30, 2025. The total equity and liabilities now stand at Rs. 823.09 million, slightly higher than the Rs. 806.34 million recorded at the end of June. The company remains hopeful that negotiations with the bank will lead to a settlement that could regularize its financial limits.

The company's future prospects remain challenging amid current economic conditions impacting the textile sector, particularly for entities with outdated machinery. Management is committed to avoiding cash losses by operating on a conversion basis and hopes for a positive outcome in bank negotiations to enable financial restructuring. Plans are in place to boost production and make necessary investments in machinery, contingent upon financial restructuring.

The report also expressed gratitude to shareholders, customers, and suppliers for their support, and acknowledged the contributions of the company's executives and staff in achieving its objectives. The directors assured continued efforts to stabilize and improve the company's financial standing in the coming quarters.