Karachi: Shahtaj Textile Limited reports a resilient financial performance for the year ended June 30, 2024, amidst challenging economic conditions. The company managed to secure an after-tax profit of PKR 27.19 million, marking an increase from the previous year's PKR 15.84 million. Despite a slight decline in net sales revenue by 1.63%, the company's strategic maneuvers, including enhanced local sales and a shift towards renewable energy, cushioned the economic impacts.

The textile manufacturer recorded a gross profit rate of 8.47% of sales, a slight improvement from the previous year's 7.93%. This increase reflects the strategic pricing adjustments made for sales under deferred letter of credit (LC) arrangements. However, the administrative and financial costs saw significant hikes due to inflationary pressures and heightened policy rates, impacting the company's operational costs.

According to information available from the Pakistan Stock Exchange (PSX), Shahtaj Textile's comprehensive approach to managing its power resources included the installation of a solar plant, approximately 1 MW, as part of its commitment to reducing energy costs and fostering sustainability.

Despite the persisting high energy costs expected to pressure future profit margins, the company is optimistic about the declining trend in inflation and interest rates, which should favor economic growth. The board has recommended a 10% cash dividend to shareholders, demonstrating confidence in the company's stability and ongoing profitability.

Shahtaj Textile remains vigilant in navigating the fluctuating demand in both local and international markets and the volatility of raw material prices and exchange rates. Its strong internal control systems and adherence to corporate governance practices underscore its resilience in maintaining operational efficiency and financial integrity in a turbulent economic landscape.