Karachi: Reliance Cotton Spinning Mills Limited has reported its financial performance for the fiscal year ending November 18, 2025, showcasing increased sales figures but a decline in net profits.
The company’s sales for 2025 reached Rs. 15,816 million compared to Rs. 15,069 million in 2024. Despite this increase, the company experienced a drop in net profit, reporting Rs. 708 million, down from Rs. 1,315 million in the previous year. The gross profit also showed a decrease to Rs. 1,932 million, representing 12.21% of sales, compared to Rs. 2,237 million or 14.84% of sales in 2024.
In terms of strategic developments, Reliance Cotton Spinning Mills Limited made significant investments in plant and machinery, amounting to Rs. 577 million. The investments included enhancements in cards, semi-automatic double box bales pressing machine, air compressor and air dryer, ring frames, overhead blower for ring spinning frames, bale plucker, and a dust and removal system for back processes.
According to information available from the Pakistan Stock Exchange (PSX), the company’s dividend payments increased to Rs. 64 million, up from Rs. 41 million in 2024, reflecting a positive move. The breakup value per share also improved to Rs. 881 from the previous Rs. 839.
The company’s balance sheet revealed that total assets were reported at Rs. 27,247 million, with significant components being property, plant, and equipment valued at Rs. 6,263 million, and stores and stocks at Rs. 8,153 million. The long- and short-term investments saw a substantial rise to Rs. 8,019 million from Rs. 3,602 million in the previous year.
On the equity and liabilities front, shareholders’ equity was noted at Rs. 8,631 million, while total long-term liabilities were recorded at Rs. 3,303 million. Short-term borrowings stood at Rs. 3,497 million.
The income statement for the consolidated group showed sales of Rs. 17,836 million, with a gross profit of Rs. 2,196 million. The share of profit from associated companies contributed significantly, reaching Rs. 2,664 million, resulting in a profit before taxation of Rs. 3,880 million, a notable improvement from Rs. 1,727 million in 2024. After taxation, the profit amounted to Rs. 2,921 million, marking a very large or significant move from Rs. 1,637 million in the previous year.
The detailed financial results reflect the company’s strategic focus on operational enhancements and a commitment to sustaining growth despite the challenges in net profitability.