Lahore: Nazir Cotton Mills Limited, a company historically known for its textile operations, has reported a significant turnaround in its financial performance for the fiscal year ending June 30, 2026. The company's Annual General Meeting, held on October 7, 2026, revealed a net profit after taxation of Rs. 73.897 million, a substantial increase from the Rs. 7.231 million reported in the previous year.
The directors presented audited financial statements showing that despite incurring administrative expenses of Rs. 15.020 million, including depreciation of Rs. 9.524 million, the company achieved sales of milk and biological assets totaling Rs. 1.521 million. This marks an improvement from Rs. 1.306 million in the previous year, contributing to a profit after tax of Rs. 63.039 million, a notable recovery from the prior year's loss of Rs. 7.231 million. The financial turnaround is reportedly aided by gains from the disposal of a building and scrap materials.
According to information available from the Pakistan Stock Exchange (PSX), Nazir Cotton Mills Limited has seen a moderate move in its financial status, attracting attention from investors and stakeholders. The shift away from traditional textile operations has been strategic, with management exploring new, non-textile business sectors to diversify revenue streams and ensure long-term viability.
The auditors, however, have expressed concerns regarding the company's going concern status. The management has addressed these concerns by highlighting a strategic realignment, which includes the cessation of textile operations, disposal of machinery, and organizational restructuring. The company's board is actively working on entering high-growth sectors and has reassured stakeholders of its ability to continue as a going concern.
The auditors' adverse opinion was based on several factors, including the cessation of textile operations and financial restructuring. The board has acknowledged these observations and emphasized that these actions are part of a deliberate strategy to safeguard value and restore financial health.
Management has also taken steps to address other financial reporting and compliance issues, such as the impairment of investments, historical tax discrepancies, and compliance with corporate governance regulations. The company is committed to refining its evaluation framework and strengthening its governance to ensure regulatory compliance in the future.
Nazir Cotton Mills Limited's strategic shift and financial recovery mark a pivotal moment for the company as it navigates new business opportunities and works towards sustaining its market presence in a competitive environment.