Lahore: Shadab Textile Mills Limited has announced a significant turnaround in its financial performance for the fiscal year ended June 30, 2024, achieving a net profit of Rs. 98.47 million compared to a loss of Rs. 107.74 million in the previous year.

The company recorded a substantial 22.10% increase in net sales, which rose to Rs. 7.28 billion from Rs. 5.96 billion, driven by enhanced operational efficiency and strategic market positioning. This improvement is a marked recovery from the previous fiscal year's downturn, showcasing a resilient comeback amid challenging market conditions.

According to information available from the Pakistan Stock Exchange (PSX), Shadab Textile's gross profit surged to Rs. 399.07 million, up from Rs. 183.65 million, reflecting a sharper focus on cost management and productivity improvements. The earnings per share also improved dramatically to Rs. 5.93 from a loss of Rs. 6.49 per share last year.

The company attributes part of its success to its solar energy initiative, having installed a new solar power system to mitigate rising energy costs, which are a significant challenge in the textile sector. Moreover, the company has benefited from a stable exchange rate, which provided cost predictability for imported raw materials.

Shadab Textile's Board of Directors has proposed a final cash dividend of Rs. 0.75 per share, which underscores their confidence in the sustained profitability and financial health of the company.

The management remains committed to technological upgrades and operational excellence to ensure competitive edge and sustainability in the challenging textile industry landscape.