Karachi: Masood Textile Mills Limited, a key player in Pakistan's textile industry, reported a significant downturn in its financial performance for the fiscal year ending June 30, 2024. The company's profit before taxation plunged to a loss of 395 million rupees from a profit of 75 million rupees the previous year, as rising finance costs and reduced other income impacted its bottom line.

The firm's revenue for the year stood at 58,677 million rupees, down from 60,106 million rupees in 2023, marking a decrease of 1,429 million rupees. Despite this revenue decline, the company managed to increase its gross profit to 9,526 million rupees, up by 1,438 million rupees from the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the cost of sales decreased by 2,867 million rupees, reaching 49,151 million rupees. However, the company's finance costs surged to 5,000 million rupees from 3,199 million rupees, contributing to the overall financial strain.

The decline in profit was further exacerbated by a significant drop in other income, which fell to 276 million rupees from 3,841 million rupees in 2023. Despite efforts to manage distribution and administrative expenses, the overall financial performance was negatively impacted by these factors.

Masood Textile Mills is strategizing to counter these challenges by expanding its business with value-added customers such as Hugo Boss, Zara, and Marks and Spencer. The company is also planning an equity injection of 2,000 million rupees during the fiscal year 2024-25 to strengthen its financial position.

The company's management remains committed to fulfilling its obligations to stakeholders, including creditors and banks, and continues to prioritize the health and wellbeing of its staff and clients. As part of its future strategy, Masood Textile Mills aims to operate at optimal efficiency and capacity while developing a new customer base in the fashion article business.