Lahore: Idrees Textile Mills Limited, a prominent player in Pakistan's textile industry, has reported substantial financial losses for the fiscal year ending June 30, 2024. The company’s financial statements reveal a loss after taxation of 194.39 million rupees, compared to a loss of 12.49 million rupees in the previous fiscal year. This marks a significant downturn as the company grapples with increasing costs and challenging market conditions.
The company's revenue saw a notable increase, reaching 6,449.76 million rupees, up from 4,200.14 million rupees in 2023. However, this increase in revenue was overshadowed by a sharp rise in the cost of sales, which climbed to 5,831.17 million rupees from 3,779.99 million rupees the previous year. This resulted in a gross profit of 618.59 million rupees, up from 420.15 million rupees in 2023.
The financial results were further impacted by rising distribution and administrative expenses, which totaled 186.56 million rupees, up from 154.61 million rupees in 2023. Additionally, finance costs surged to 579.71 million rupees from 306.86 million rupees, further straining the company's bottom line.
According to information available from the Pakistan Stock Exchange (PSX), Idrees Textile Mills' loss before taxation stood at 220.15 million rupees, a significant increase from 63.62 million rupees in 2023. The company attributed this to a combination of increased finance costs and other operating expenses, which together amounted to 198.70 million rupees, up from 79.84 million rupees the previous year.
The basic and diluted loss per share for the year was reported at 9.79 rupees, compared to 0.63 rupees in 2023, highlighting the challenging financial landscape faced by the company.
In its future outlook, Idrees Textile Mills expressed optimism that the gradual reduction in the discount rate by the State Bank of Pakistan would alleviate some of the financial pressures. The company also called for government intervention to address local cotton crop issues and to stabilize policies concerning taxation and import tariffs to foster a more predictable business environment.