Karachi: International Knitwear Limited has reported a decline in its annual profits for the fiscal year ending June 30, 2026, reflecting a challenging year marked by reduced sales. The company's Board of Directors, in a meeting held on September 23, 2026, announced that no cash dividends, bonus shares, or right shares would be distributed to shareholders this year as per Section 199 of the Companies Act, 2017.
In its financial results released on September 24, 2026, International Knitwear Limited reported net sales of 863.52 million rupees, down from 1.21 billion rupees in the previous year. This represents a significant decrease, highlighting the company's struggle to maintain its sales volume. The cost of goods sold also decreased to 763.95 million rupees from 1.10 billion rupees. Consequently, the gross profit fell to 99.57 million rupees from 106.36 million rupees.
The company's operating profit stood at 55.98 million rupees, a decline from 68.71 million rupees reported last year. Other income, including unrealized gains on revaluation of investments, totaled 10.55 million rupees, down from 13.67 million rupees. The finance costs increased to 39.62 million rupees from 29.44 million rupees, further impacting the profitability.
According to information available from the Pakistan Stock Exchange (PSX), International Knitwear Limited's profit before income tax was reported at 24.23 million rupees, a sharp decline from 48.29 million rupees in the previous fiscal year. After accounting for income taxes and other levies, the profit after income tax stood at 16.04 million rupees, compared to 30.86 million rupees last year. The earnings per share were recorded at 1.66 rupees, down from 3.19 rupees.
The company has also scheduled its 36th Annual General Meeting for October 27, 2026, at its registered office in Karachi, where shareholders are expected to review and approve the financial results. The shares transfer books will remain closed from October 20 to October 27, 2026, to facilitate this process.
In terms of cash flows, the company generated 182.73 million rupees from operating activities, a recovery from a negative cash flow of 205.37 million rupees in the previous year. However, investing activities consumed 14.74 million rupees, while financing activities resulted in an outflow of 168.39 million rupees.
The financial report reflects a challenging year for International Knitwear Limited, with significant impacts on sales and profitability. The company's management is likely to address these challenges in the upcoming Annual General Meeting and set a course for recovery in the upcoming financial year.