Lahore: In a detailed corporate briefing session held for the fiscal year ended June 30, 2025, Shams Textile Mills Limited presented a comprehensive overview of its operational and financial performance. The session highlighted significant declines in both production and sales, alongside a challenging profitability landscape.
For the fiscal year 2024-25, Shams Textile Mills reported a considerable drop in yarn production and sales. Yarn production decreased from 193,592 bags in 2024 to 131,820 bags in 2025, representing a contraction of 32%. Additionally, yarn sales witnessed a sharper decline, falling by 38% from 202,660 bags in 2024 to 125,859 bags in 2025.
The company's profitability ratios also revealed a downturn. The gross profit ratio fell to 2.240% in 2025 from 3.910% in 2024, indicating a minor move. Meanwhile, the operating profit margin dropped to 0.20% from 0.77%, and the net profit margin saw a big move downward to -3.34% from -0.49%. Return on average equity and return on capital employed both exhibited very large or significant moves, declining to -17.92% and -17.59%, respectively.
According to information available from the Pakistan Stock Exchange (PSX), Shams Textile Mills' financial performance was further challenged by increased finance costs, which rose to 105.65 million PKR, up from 90.50 million PKR in the previous year. Despite a net cash generation of 466.22 million PKR from financing activities, the overall cash and cash equivalents at the end of the year decreased to 8.74 million PKR from 59.01 million PKR at the beginning of the year.
The balance sheet summary reflected changes in key financial positions. The total assets increased marginally to 2.61 billion PKR in 2025 from 2.55 billion PKR in 2024. However, the reserves and shareholders' equity both decreased, with reserves falling to 693.46 million PKR from 844.92 million PKR and shareholders' equity declining to 779.86 million PKR from 931.32 million PKR.
The company's activity ratios displayed mixed results. The debtors' turnover ratio decreased to 9.1 times from 10.5 times, while the inventory turnover ratio also declined to 6.2 times from 12.4 times, reflecting shifts in operational efficiency. Meanwhile, the total assets turnover ratio showed a moderate move downward, decreasing to 1.6 times from 2.8 times the previous year.
Overall, the fiscal year 2024-25 presented significant challenges for Shams Textile Mills Limited, with marked declines in production, sales, and profitability. The company continues to navigate a complex market environment, as evident from the detailed financial disclosures and performance indicators.