Lahore: Kohinoor Textile Mills Limited has announced a notable improvement in its financial performance for the third quarter of the fiscal year 2024-25, according to the company's Directors' Review report. The un-audited accounts for the nine months ending March 31, 2025, reveal a resilience in operations despite ongoing challenges in the yarn market.
For the third quarter, Kohinoor Textile Mills Limited reported strengthened performances in its Home Textiles and Weaving divisions, which counterbalanced the weaker results in the Spinning divisions. The company's performance was aided by a reduction in finance costs, driven by declining interest rates, which helped offset the impact of rising gas prices.
The Spinning divisions experienced a slight decline in performance due to substantial foreign yarn imports affecting local markets. However, the company's efforts to enhance operational resilience were evident, with the installation of an additional 5 MW of solar energy expected to be operational by the end of the financial year. This move is aimed at reducing power costs. Moreover, significant investments in back process machinery at the Gujar Khan site are anticipated to enhance product flexibility by the end of 2025.
The Weaving division saw further improvements over the previous quarter, driven by effective cost control measures and the production of complex fabric constructions aimed at diverse markets. A decrease in interest rates further boosted this division's performance, with additional income derived from a now-completed short-term investment in T-bills.
The Home Textiles division experienced a strong third quarter, marked by a significant rise in both revenue and profitability. The division's focus on high-quality, value-added products contributed positively, although concerns about potential tariff changes in the US market loom over future performance.
Kohinoor Textile Mills Limited remains committed to sustainability, with ongoing projects such as the solar energy expansion and the installation of a new biofuel boiler expected to be operational before the fiscal year's end. The company is also exploring water recycling initiatives and battery technology to reduce dependency on fossil fuels.
The company's financial results show a 5% increase in sales to Rs. 44,938 million, compared to Rs. 42,947 million in the previous year. The cost of sales rose by 6% to Rs. 37,742 million, resulting in a gross profit of Rs. 7,196 million, slightly down from Rs. 7,357 million in the prior year. Operating profit improved to Rs. 5,692 million from Rs. 5,157 million, while after-tax profit rose to Rs. 2,009 million, compared to Rs. 1,762 million last year. Earnings per share increased to Rs. 7.46 from Rs. 6.44 for the corresponding period last year.
According to information available from the Pakistan Stock Exchange (PSX), the company's market category remains strong, supported by its financial resilience and strategic investments.
The Directors expressed gratitude to the company's members, financial institutions, and customers for their support and acknowledged the dedication of the employees across various divisions. They noted a cautiously optimistic outlook for the upcoming quarters, despite potential global economic downturns triggered by trade tensions and tariff uncertainties.