Lahore: Sapphire Textile Mills Limited has disclosed its financial results for the fiscal year ending June 30, 2024, showcasing substantial profitability alongside strategic fiscal adjustments.

On September 26, 2024, during a combined physical and virtual meeting of the board of directors, a final cash dividend of Rs. 10 per share was declared, equating to a 100% payout based on the year’s earnings. According to information available from the Pakistan Stock Exchange (PSX), this announcement follows a year marked by significant strategic investments aimed at expanding and diversifying the company's operations.

The board noted that these investments have substantially increased the enterprise value for shareholders. However, they also led to the utilization of the general reserves and unappropriated profits, which are not fully available for dividend distribution. In response, the board decided to reclassify Rs. 30.730 billion from these categories to capital reserves. This reclassification aims to more accurately reflect the reserves' roles in capacity expansion and long-term investments.

Financially, Sapphire Textile reported a net turnover of Rs. 82.40 billion, up from Rs. 72.84 billion the previous year, with a gross profit of Rs. 11.06 billion, compared to Rs. 10.37 billion in 2023. After accounting for operational costs, the profit from operations stood at Rs. 13.24 billion, an increase from Rs. 9.38 billion last year.

The company’s finance costs totaled Rs. 6.39 billion, an increase from Rs. 4.68 billion, reflecting higher borrowing costs. Despite these expenses, the profit before tax reached Rs. 5.15 billion, an improvement from Rs. 3.45 billion in 2023. The earnings per share also increased significantly to Rs. 238.53 from Rs. 151.74.

On a consolidated basis, including its subsidiaries, Sapphire Textile’s results were even more robust, with a net turnover of Rs. 137.30 billion and a gross profit of Rs. 41.04 billion. The consolidated profit for the year amounted to Rs. 19.73 billion, attributed both to equity holders of the parent and non-controlling interests.

The Annual General Meeting is scheduled for October 28, 2024, in Karachi and via video conferencing. The Share Transfer Books will be closed from October 22 to October 28, 2024. The Annual Report will be transmitted through PUCARS, ensuring compliance with regulatory requirements and facilitating shareholder access.