Karachi: International Knitwear Limited (INKL) has released its unaudited financial results for the first quarter ending September 30, 2026, revealing a challenging period marked by declining profits and a shift into losses. The financial report, presented by the Board of Directors on November 2, 2026, highlights the various factors impacting the company's financial performance during this period.
Sales for the quarter reached 275.35 million rupees, a marginal decrease from the 275.93 million rupees recorded in the same period last year, reflecting a minor move of 0.21%. Despite stable sales figures, gross profit saw a decline to 18.80 million rupees from the previous year's 33.78 million rupees. This decrease was attributed to rising costs in raw materials, labor, and production, as well as increased utility expenses. The company faced pricing pressures in both local and export markets, which, coupled with competitive conditions, limited the ability to transfer these costs to customers.
According to information available from the Pakistan Stock Exchange (PSX), unfavorable market conditions significantly impacted the company's other income, which plummeted to 0.96 million rupees from 5.65 million rupees in the corresponding period last year. The downturn in the stock market, exacerbated by geopolitical tensions in the Middle East, contributed to this decline in investment returns.
Consequently, INKL reported a pre-tax loss of 4.21 million rupees, a stark contrast to a profit of 15.25 million rupees in the previous year. The company's net loss after taxation was recorded at 7.65 million rupees, compared to a profit of 11.25 million rupees in the same quarter last year. This decline in profitability was further reflected in the basic and diluted loss per share, which stood at 0.79 rupees, down from earnings of 1.16 rupees per share the previous year.
The company's management expressed a commitment to improving financial performance by focusing on strengthening cost controls, enhancing production efficiency, and optimizing resource utilization to counteract the current cost pressures and market challenges.