Karachi: Shadab Textile Mills Limited has reported a significant increase in profit after tax for the nine-month period ending March 31, 2025, according to the company's recently released unaudited financial statements. The company achieved a profit after tax of Rs. 145.084 million, marking an 87.40% increase from Rs. 77.416 million recorded in the same period last year.
Total net sales for the period reached Rs. 5,928.614 million, reflecting a growth of Rs. 640.099 million or 12.10% compared to the previous year's sales of Rs. 5,288.515 million. Consequently, the company reported earnings per share of Rs. 8.74, up from Rs. 4.66 in the prior year.
The company's performance was bolstered by a relatively stable exchange rate, which helped maintain consistent costs for raw materials. Additionally, Shadab Textile Mills successfully reduced its finance costs through effective management of short-term borrowings. However, the company noted that elevated energy costs continue to challenge the competitiveness of the textile industry in the global market.
The government's recent decision to reduce electricity tariffs from April 2025 is anticipated to provide relief to the industry. Shadab Textile Mills has taken proactive steps to address energy-related challenges by expanding its solar energy capacity, installing an additional 0.840 MW solar system, bringing the total installed capacity to 1.75 MW. This investment is expected to significantly reduce energy expenses and lower overall production costs.
Furthermore, the reduction in the State Bank's policy rate from 22.00% to 12.00% is expected to ease the company's finance costs and improve financial efficiency. According to information available from the Pakistan Stock Exchange (PSX), these developments are viewed positively by market observers.
The company remains optimistic about the government's future measures to support the textile sector, including reduced tariffs and financing for renewable energy initiatives. These steps are deemed crucial for revitalizing the textile industry, particularly the spinning sector, which is a key component of Pakistan's economy.
The board expressed its appreciation to the company's executives, officers, staff, and workers for their dedicated efforts and continued commitment.