Karachi: Kohat Textile Mills Limited has reported an improvement in its financial ratios for the year ended June 30, 2024, alongside a positive outlook for both global and local economic conditions. The company’s corporate briefing session highlighted key financial metrics and strategic plans for future growth.
According to the company’s financial report, the debt-to-equity ratio for the year 2024 stood at 41.59 times, compared to 43.57 times in 2023. The current ratio also showed an improvement, reaching 1.00 times from the previous year’s 0.93 times. The Karachi Interbank Offered Rate (KIBOR) increased to 22.01% in 2024 from 15.89% in 2023. The market value of equity rose to Rs. 15.01 per share from Rs. 13.00 per share in the prior year. Notably, the number of shares traded saw a substantial increase, with 2,629,781 shares traded in 2024, up from 247,500 shares in 2023.
According to information available from the Pakistan Stock Exchange (PSX), the global economy is anticipated to gain some momentum as inflationary pressures and supply chain constraints ease. However, geopolitical tensions and monetary tightening are expected to result in modest growth for global trade. Locally, economic indicators have shown signs of improvement, including a stable currency, a narrowed current account deficit, eased inflation, and improved foreign exchange reserves. The quicker-than-expected decline in baseline inflation suggests potential for further rate cuts, which could bolster demand-led growth.
Kohat Textile Mills Limited has outlined its strategic plans to achieve business objectives, including the replacement of outdated technology with advanced machinery. An additional 3MW solar project is currently being installed, increasing the total solar capacity to 5.1MW, sufficient to meet factory requirements. The management is also committed to reducing input costs to generate wealth for shareholders. The textile sector is recognized for its significant potential, which the company believes could be realized with government support in identifying textiles as a priority area.
As of the date of the report, Kohat Textile Mills Limited remains optimistic about its future prospects in the evolving economic landscape.