Karachi: Textile Mills Limited has released its financial results for the fiscal year ending June 30, 2025, revealing substantial changes in both its assets and liabilities, as well as notable losses. The company faced a difficult year, marked by significant financial fluctuations and operational challenges.
The company’s total assets increased to 7.63 billion rupees from 7.04 billion rupees in the previous year, marking a very large or significant move of 8.47%. This increase was largely driven by current assets, which rose to 4.34 billion rupees from 3.65 billion rupees. According to information available from the Pakistan Stock Exchange (PSX), this growth was primarily supported by an increase in trade debts and stock-in-trade.
Despite the increase in assets, Textile Mills Limited reported a loss for the year of 397.88 million rupees, compared to a loss of 220.15 million rupees in the previous year. This reflects a very large or significant move in the company’s net loss. The loss per share also doubled to 19.88 rupees from 9.79 rupees the previous year.
In terms of equity, the company’s total equity decreased to 2.13 billion rupees from 2.50 billion rupees, demonstrating a very large or significant move of -14.80%. This decline was primarily due to a reduction in the surplus on revaluation of property, plant, and equipment, which dropped to 847.63 million rupees from 919.58 million rupees, as well as a decrease in revenue reserves.
The company’s liabilities also saw a considerable increase, climbing to 5.48 billion rupees from 4.53 billion rupees, marking a very large or significant move of 20.78%. This rise was driven by current liabilities, which increased to 4.64 billion rupees from 3.78 billion rupees.
The statement of profit or loss for the year showed that revenue from contracts with customers fell to 5.23 billion rupees from 6.45 billion rupees, indicating a very large or significant move of -18.79%. The gross profit decreased to 318.29 million rupees from 618.59 million rupees, reflecting operational challenges faced by the company.
Despite these setbacks, the company generated positive cash flows from operating activities before working capital changes, amounting to 288.42 million rupees. However, after accounting for changes in working capital, the company reported net cash used in operating activities of 93.31 million rupees.
The company’s financial results underscore the challenging environment it faced during the fiscal year, characterized by increased liabilities, decreased equity, and substantial losses. These financial shifts highlight the need for strategic adjustments as the company navigates through a volatile economic landscape.