Karachi: Shadab Textile Mills Limited announced a robust recovery in its financial performance for the period ending September 30, 2024, posting a profit after tax of Rs. 35.38 million, contrasting sharply with the loss of Rs. 11.96 million in the same period last year.
According to information available from the Pakistan Stock Exchange (PSX), the company's total sales surged by 20.01% to Rs. 1,912.51 million from Rs. 1,592.57 million in the corresponding period last year, driven by improved market conditions and internal efficiencies. This led to a significant improvement in earnings per share, which rose to Rs. 2.13 from a loss per share of Rs. 0.72 during the same period last year.
Despite these positive results, the textile sector continues to face substantial challenges that impact its competitiveness on the international stage. Key issues include escalating raw material costs, rising energy expenses, and increased markup rates, all of which have inflated production costs and affected the sector's global competitiveness.
In response to these challenges, Shadab Textile has expanded its investment in renewable energy, notably increasing its solar energy capacity. The company installed an additional 0.84 MW solar system during the period, bringing its total capacity to 1.75 MW. This expansion is expected to significantly reduce energy costs and enhance production efficiency. Future plans include further solar installations to continue improving energy efficiency and cost-effectiveness.
Additionally, the recent reduction in the government's policy rate from 22.00% to 16.50% is anticipated to decrease the company's finance costs and bolster financial performance further. The company's leadership expressed optimism that the government would continue to support the textile sector with measures such as reduced electricity and gas tariffs, lower markup rates, and long-term financing for renewable energy projects.
The board took this opportunity to acknowledge and thank the company's executives, officers, staff, and workers for their dedication and hard work, which have been integral to navigating the company through a challenging economic landscape and towards a path of financial recovery.