Faisalabad: Masood Textile Mills Limited, a prominent textile company headquartered in Faisalabad, announced significant losses in its financial results for the fiscal year ended June 30, 2024. The company reported a net loss of 470.03 million Rupees, a steep decline from the previous year's profit of 2.65 billion Rupees.

The Board of Directors convened on October 5, 2024, at the company’s registered office to discuss these results and declared no dividends, issuing no new shares or other corporate entitlements. This decision underscores the financial challenges faced by the company amidst fluctuating market conditions. According to information available from the Pakistan Stock Exchange (PSX), the textile giant struggled with an increase in various costs that eroded profits.

Revenue from contracts with customers totaled 58.68 billion Rupees for the year, marginally higher than last year's 60.11 billion Rupees. However, the cost of sales also saw a notable increase, amounting to 49.15 billion Rupees compared to 52.02 billion the previous year. Despite these challenges, the company managed a gross profit of 9.53 billion Rupees, though it was lower than the 8.09 billion recorded in 2023.

Expenses across the board rose, including a significant hike in distribution costs and administrative expenses, culminating in a finance cost of 4.99 billion Rupees. These factors contributed to a profit before levy and taxation of only 458.02 million Rupees, sharply down from 3.49 billion Rupees in the prior year.

The Annual General Meeting is scheduled for October 28, 2024, where shareholders are expected to discuss the future course of action in light of the current financial downturn. The company has announced that its share transfer books will remain closed from October 21, 2024, to October 28, 2024, to facilitate necessary administrative adjustments.

Masood Textile Mills remains committed to navigating these challenging times with strategic measures aimed at restructuring and efficiency improvement. The company’s leadership is focused on leveraging its extensive resources to rebound from the current setbacks and capitalize on potential market opportunities in the coming year.