Lahore: Reliance Weaving Mills Limited has released its financial results for the fiscal year ending June 30, 2024, showing a notable increase in net sales but a decline in net profit. According to the company's latest corporate briefing session, net sales rose by 27 percent to 41,461 million Pakistani Rupees from 32,682 million in the previous year. However, net profit saw a decrease of 41 percent, dropping to 120 million Pakistani Rupees from 203 million.

The company's gross profit also improved, with a 34 percent increase to 4,842 million Pakistani Rupees, resulting in a gross profit margin of 11.68 percent compared to the previous year's 11.06 percent. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 42 percent, reaching 4,757 million Pakistani Rupees.

Despite these positive developments, the company experienced a significant drop in net profit, attributed to increased finance costs, which rose by 59 percent to 3,893 million Pakistani Rupees. Profit before taxation declined by 75 percent to 118 million Pakistani Rupees, and earnings per share fell to 3.88 Pakistani Rupees from 6.59 Pakistani Rupees in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the total assets of Reliance Weaving Mills Limited decreased by 5 percent to 34,864 million Pakistani Rupees, while total liabilities also contracted by 6 percent to 24,779 million Pakistani Rupees.

Looking ahead, the management of Reliance Weaving Mills Limited remains optimistic about sustainable profitability. The company is focusing on cost transformation and urging the government to implement supportive policies for the sector. Plans are underway for the installation of a 9 MW and a further 6 MW power setup, expected to produce 23 million units and potentially save 805 million Pakistani Rupees annually. Additionally, anticipated reductions in the KIBOR rate by the end of December 2024 may lead to annual finance cost savings of 787 million Pakistani Rupees.