Karachi: Idrees Textile Mills Limited has reported a significant decline in its profits for the fiscal year ending December 31, 2024, highlighting the challenges faced by the textile sector in Pakistan amidst rising operational costs.

The company’s net sales for the year stood at 2.48 billion rupees compared to 3.48 billion rupees in the previous year. The cost of sales was recorded at 2.28 billion rupees, down from 3.10 billion rupees in 2023. The gross profit for the year was 194.07 million rupees, a decrease from the previous year's 372.02 million rupees, reflecting a challenging market environment.

The company incurred a distribution cost of 30.81 million rupees and administrative expenses amounting to 50.73 million rupees. The operating profit was 112.54 million rupees, a decline from 266.90 million rupees the prior year. The finance cost remained substantial at 272.03 million rupees, slightly lower than the 279.96 million rupees recorded last year. Other operating expenses were 25.57 million rupees, contributing to a loss before taxation and levy of 167.05 million rupees.

According to information available from the Pakistan Stock Exchange (PSX), the company faced additional levies amounting to 28.95 million rupees, resulting in a further reduction in profitability. The loss before taxation was reported at 196.00 million rupees, compared to a loss of 66.19 million rupees in the previous year. After accounting for taxation, the loss for the period was 178.91 million rupees, a substantial increase from the 36.93 million rupees loss in 2023.

The company’s cash flow from operating activities also showcased the financial strain faced during the year. The operating cash flows before working capital changes were 188.99 million rupees. However, changes in current assets and liabilities resulted in cash generated from operations amounting to 228.62 million rupees. After accounting for finance costs and tax payments, there was a net cash outflow of 85.65 million rupees from operating activities.

Investing activities further contributed to the financial picture, with the company spending 13.22 million rupees on property, plant, and equipment and receiving proceeds of 960,000 rupees from the disposal of assets, leading to a net cash outflow of 39.65 million rupees in investing activities.

The designated market category for the company remains under textiles, indicating the ongoing challenges and competitive pressures in the textile industry in Pakistan.