Lahore: Shadab Textile Mills Limited has reported a significant financial recovery for the fiscal year ended June 30, 2024, in their latest Board of Directors meeting held on September 27. The company announced a final cash dividend of Rs. 0.75 per share, which amounts to a 7.50% dividend yield, reflecting a positive shift in its financial stance from the previous year.

The textile company disclosed its annual financial results, showing a notable increase in net sales to Rs. 7.28 billion in 2024, up from Rs. 5.96 billion in 2023. The cost of sales also rose to Rs. 6.88 billion, resulting in a gross profit of Rs. 399.07 million, more than double the figure from the previous year at Rs. 183.65 million. According to information available from the Pakistan Stock Exchange (PSX), these results mark a turnaround from previous financial challenges.

Administrative and general expenses amounted to Rs. 153.66 million, with selling and distribution expenses registering a minimal Rs. 0.39 million. The operational efficiencies achieved led to an operating profit of Rs. 245.01 million, a substantial improvement compared to Rs. 41.54 million in the prior year.

Finance costs were slightly down at Rs. 133.91 million from Rs. 137.05 million, and other income increased to Rs. 39.83 million from Rs. 2.93 million. The company's profit before levies and taxation stood at Rs. 114.91 million, recovering from a loss of Rs. 92.57 million in 2023. After accounting for minimum tax and other levies, the profit after taxation reached Rs. 98.47 million, a significant recovery from a loss of Rs. 107.74 million the previous year.

The earnings per share turned positive at Rs. 5.93, rebounding from a loss of Rs. 6.49 per share in 2023. The Annual General Meeting is scheduled for October 28, 2024, in Lahore, where shareholders are expected to further discuss the year’s performance and the forward-looking strategies.

The Share Transfer Books of the Company will be closed from October 22, 2024, to October 28, 2024, to determine the entitlements for the dividend. Transfers received at the Lahore Registrar and Shares Transfer Office by the end of October 21, 2024, will be eligible for the dividend.

The company will also transmit its Annual Report through PUCARS 21 days before the Annual General Meeting, ensuring that all stakeholders are well-informed of the company’s financial health and future outlook.