Karachi: Stylers International Limited has reported a significant revenue growth of 61.7% for the nine-month period ending March 31, 2025. The substantial increase is attributed primarily to enhanced production capacity under its Project Sunshine initiative and sustained growth in key export markets.
Despite the revenue surge, the company faced a decrease in its gross profit margin, which fell to 18.4% from 21.7% in the same period last year. This decline was due to the appreciation of the Pakistani Rupee against the US Dollar and increased depreciation expenses from a new plant. The overall tax burden also rose significantly, with a 367% increase under the Normal Tax Regime, impacting net profitability. According to information available from the Pakistan Stock Exchange (PSX), these factors, coupled with the issuance of right shares earlier in the financial year, contributed to a decline in the company's earnings per share.
In response to its financial performance, the Board of Directors declared an interim cash dividend of PKR 0.25 per share, equating to a 2.5% yield for the period. This decision reflects the company's commitment to returning value to its shareholders despite the challenging economic environment.
The broader macroeconomic landscape in Pakistan during Q3 FY25 showed gradual stabilization, supported by declining inflation and a stable exchange rate. The State Bank of Pakistan reduced the policy rate by 1,000 basis points since June 2024, bringing it down to 12% by March 2025. This move aimed to stimulate investment and growth, providing a conducive environment for the textile sector, Pakistan's largest export-oriented industry.
Within the textile sector, value-added segments saw increased international demand, although margins were pressured by intense competition and other factors. The global trade environment remains uncertain, with geopolitical tensions impacting buyer sentiment and global supply chains. These conditions necessitate adaptive planning and diversified sourcing strategies for companies within the sector.
Looking ahead, Stylers International Limited remains focused on its growth strategy, driven by Project Sunshine, which is set to significantly expand production capabilities. The project is progressing according to plan and is expected to solidify the company's position among Pakistan's leading apparel exporters. The company is also monitoring global trade dynamics and evolving customer preferences to maintain supply chain agility and sustainable manufacturing practices.