Karachi: Prosperity Weaving Mills Limited (PWML), a prominent entity under the Nagina Group, has reported a series of notable financial variances for the fiscal year 2024-25. The corporate briefing session, held on November 19, 2025, highlighted both the hurdles and opportunities faced by the company, particularly in light of recent economic shifts.
According to the financial statements, PWML’s other operating expenses saw a big move, increasing by 27.78% to 29,560,040, primarily due to higher provisions for the Wage Price Index (WPI) and salary increments. This increase negatively impacted the company’s profitability. In contrast, other income experienced a significant drop of 31.12%, decreasing to 29,193,779, mainly due to a decline in dividend income and a modest increase in gains from the sale of financial assets.
The finance cost showed a very large move, falling by 37.33% to 256,188,156, attributed to a reduction in average interest rates. This decline was reflected in both external borrowings and internal loans. Additionally, accrued interest or mark-up decreased by 41.15%, totaling 43,364,251, driven by a lower average interest rate earned on advances.
A remarkable increase was observed in stores, spare parts, and loose tools, which rose by 83.07% to 179,945,830, due to higher purchases of fuel oil and lubricant stocks. Advances also showed a substantial rise of 64.07%, reaching 46,432,447, indicating increased cash advances provided to employees.
Sales tax refundable saw a very large move, escalating by 417.90% to 255,318,075, largely due to significant receivable balances recorded earlier in the year. Meanwhile, other financial assets increased by 44.13% to 105,960,114, driven by market price gains on held financial assets.
According to information available from the Pakistan Stock Exchange (PSX), the company’s sales for the year ended June 30, 2025, were reported at 18.19 billion, witnessing a slight decrease from 18.75 billion in 2024. Gross profit stood at 1.19 billion, while profit before tax was recorded at 390.85 million. Profit after tax amounted to 91.12 million, reflecting the company’s ongoing efforts to navigate economic challenges.
PWML’s total assets for the quarter ended September 30, 2025, were reported at 7.44 billion, with equity totaling 2.52 billion. The balance sheet also highlighted a decrease in long-term liabilities to 1.80 billion and current liabilities at 3.13 billion.
Amid these financial shifts, the company continues to face challenges such as low fabric demand, policy issues, and energy costs. Despite these hurdles, the State Bank of Pakistan’s decision to reduce the policy rate to 11% has provided some relief, offering a stable exchange rate and improved cost forecasting for the company.