Karachi: Hamid Textile Mills Limited has reported increased sales for the third quarter ending March 31, 2025, despite facing significant financial challenges. The company's unaudited financial results show a 32.47% increase in sales, climbing from Rs. 529.90 million to Rs. 701.95 million compared to the same period last year.

The directors of Hamid Textile Mills emphasized their focus on operating the unit at an optimum level to cover operational and fixed costs. This effort resulted in a gross profit of Rs. 19.67 million, up from Rs. 7.96 million in the corresponding quarter. However, the company reported a net loss of Rs. 28.18 million for the third quarter, an increase from the Rs. 15.74 million loss reported during the same period last year. This loss includes a depreciation charge of Rs. 28.59 million.

According to information available from the Pakistan Stock Exchange (PSX), the textile sector has been adversely affected by unfavorable external environmental factors, increasing the cost of doing business. The company is currently facing liquidity problems due to ongoing litigation with its bank, resulting in expired working capital financial facilities. Hamid Textile Mills is operating on its own limited financial resources while negotiating a settlement with the bank to regularize its financial limits.

Despite these challenges, the management is optimistic about future prospects. The directors highlighted the challenges posed by prevailing political and economic conditions, particularly for the textile sector's efforts to revive companies with outdated machinery. The management is employing a conversion basis strategy to avoid cash losses and expects a positive outcome from the bank settlement proposal.

The company plans to increase production to stabilize its operations and has outlined a strategy for regular investment in plant and machinery. This investment is contingent upon the successful restructuring and rescheduling of its financial liabilities.

The board expressed gratitude to shareholders, customers, and raw material suppliers for their support, as well as to the company's executives, staff, and workers for their efforts.