Karachi: Mahmood Textile Mills Limited has declared its financial outcomes for the fiscal year ended June 30, 2024, showing substantial improvement in operational performance despite the lack of dividend distribution or other shareholder benefits. According to information available from the Pakistan Stock Exchange (PSX), this improvement underscores a significant recovery in operations amidst a challenging economic landscape.
The company recorded sales of 66.58 billion Rupees for 2024, up from 54.63 billion Rupees in 2023. The cost of sales stood at 56.86 billion Rupees, resulting in a gross profit of 9.73 billion Rupees, compared to 7.71 billion Rupees the previous year. This represents a growth in gross margin, reflecting efficient cost management and robust sales strategies.
Operating expenses totaled 2.88 billion Rupees, with distribution and administrative expenses marked at 1.68 billion Rupees and 1.21 billion Rupees, respectively. Despite the higher expenses, operating profit surged to 6.85 billion Rupees from 5.29 billion Rupees in 2023. Finance costs significantly increased to 5.63 billion Rupees, up from 3.95 billion Rupees, affecting the overall financial health but not overshadowing the operational gains.
Net profit for the year after accounting for taxes and other costs was 249.54 million Rupees, a sharp decline from the previous year’s 1.20 billion Rupees. The company attributed this decrease to higher finance costs and operational expenses. However, the earnings per share showed a drastic reduction to 8.32 from 40.06.
The Board of Directors has announced that there will be no cash dividends, bonus issues, or rights shares this year. The Annual General Meeting is scheduled for October 28, 2024, at the company’s headquarters in Multan. Shareholders should note that the share transfer books will be closed from October 21 to October 28, 2024.