Multan: Reliance Weaving Mills Limited has announced its financial performance for the nine months ending March 31, 2025, showing a substantial rise in net profits amidst escalating energy expenses. The company reported a net profit of Rs. 101.20 million, a notable increase from Rs. 39 million in the same period of the previous year.
The textile firm's financial results were marked by a significant rise in energy costs, which surged by Rs. 881 million, an increase of 32.86%, due to the hike in gas and RLNG prices. This rise in energy costs impacted the company's profitability. Conversely, the finance cost decreased by Rs. 839 million, or 27.9%, compared to the previous period, providing some relief to the financial statement.
Operationally, the company maintained satisfactory performance levels despite challenging economic conditions within Pakistan. The management's efforts to optimize production, reduce costs, and improve efficiency contributed positively to the company's overall performance.
The textile sector, designated as a key market category, faced several challenges during this period, including a decline in cotton production for the fiscal year 2025. However, increased imports of raw cotton have mitigated the impact of reduced local production, ensuring a steady supply of essential raw materials. This shift, however, has led to increased procurement costs, including import charges, custom duties, and transportation expenses.
Internationally, the sector is dealing with challenges such as diminishing global demand. In response to these challenges, Reliance Weaving Mills Limited is taking strategic steps to reduce energy costs. The company has installed a 17 MW solar project, with 6 MW already operational, to mitigate the impact of rising energy prices.
According to information available from the Pakistan Stock Exchange (PSX), Reliance Weaving Mills Limited remains optimistic about its future prospects. Despite the current economic environment in Pakistan, the company believes it is well-positioned to navigate these challenges and capitalize on available opportunities within the textile sector.