Karachi: Indus Dyeing & Manufacturing Company Limited has released its unaudited consolidated financial statements for the nine-month period ending March 31, 2025, reporting a turnover of Rs. 81,536 million, which marks an increase from Rs. 80,324 million in the same period the previous year. The financial results were presented to shareholders in a Director's Review, detailing both the achievements and challenges faced by the company in the current fiscal period.
Despite the growth in turnover, the company reported a decline in gross profit, with figures showing Rs. 5,836 million for the current period compared to Rs. 7,215 million the previous year. Profit before taxation also decreased to Rs. 1,142 million from Rs. 1,675 million last year. The net profit after taxation experienced a significant drop, reaching Rs. 364 million, down from Rs. 1,206 million in the same period of 2024. The earnings per share for the period decreased to Rs. 6.71 from Rs. 22.24.
The report highlighted a technical disruption in the company's Enterprise Resource Planning (ERP) system, which broke down on April 15, 2025, causing delays in financial reporting. The IT department has been working to restore full functionality, validate data integrity, and complete necessary reconciliations.
Administrative expenses increased by Rs. 31 million, while distribution costs decreased by Rs. 40 million. Financial costs saw a significant reduction, dropping by Rs. 933 million. Despite these adjustments, no interim dividend was announced during the period under review.
According to information available from the Pakistan Stock Exchange (PSX), the company faced external challenges, including potential U.S. tariffs on certain imports, which could affect Pakistan's textile industry. The ongoing negotiations provide a window of opportunity to secure market positions.
Indus Dyeing has focused on efficiency and capacity utilization to maintain competitiveness. With the State Bank of Pakistan considering further interest rate cuts, the company aims to navigate the sluggish large-scale manufacturing sector. The spinning industry continues to face challenges from policy inconsistencies, cheaper regional imports, and rising gas prices.
The company's board comprises 10 directors, with a compliance structure in line with the Code of Corporate Governance, 2019. The board includes three independent directors, three executive directors, and four non-executive directors, with a total of eight male and two female directors.
Indus Dyeing remains committed to environmental policies at its production facilities and has made its financial statements available on its website for shareholders. The directors have expressed gratitude towards employees, customers, bankers, and shareholders for their support and trust during these challenging times.