Zephyr Textiles Limited Reports Significant Profit Decline Amid Steady Sales

Lahore: Zephyr Textiles Limited has disclosed its financial results for the year ending June 30, 2025, revealing a substantial decrease in profit compared to the previous year. The information was made public following a meeting of the Board of Directors held on September 30, 2025, at the company's registered office in Lahore.

The company's sales for the year totaled approximately 8.28 billion rupees, a marginal decrease from the 8.39 billion rupees reported in 2024. Despite this steady sales performance, the gross profit for 2025 stood at 815.17 million rupees, down from 896.67 million rupees in the prior year. This represents a gross margin of 9.85% for 2025, compared to 10.68% in 2024. The decline in gross margin indicates a moderate move.

Operating expenses, including administrative and selling costs, amounted to 524.74 million rupees, marking a decrease from the previous year's 619.87 million rupees. Other operating income also saw a significant decline, recorded at 95.98 million rupees against last year's 252.12 million rupees, resulting in an operating profit of 341.62 million rupees for 2025, down from 444.45 million rupees in 2024.

The company's profit before taxation and levy was 80.32 million rupees, a big move down from 151.44 million rupees the previous year. The levy for 2025 was 103.49 million rupees, increasing from 85.77 million rupees in 2024, leading to a loss before income tax of 23.17 million rupees, compared to a profit of 65.67 million rupees in 2024.

After accounting for taxation, which resulted in a credit of 24.99 million rupees, the company reported a profit after taxation of 1.82 million rupees, a very large or significant move down from 45.65 million rupees in the previous year. The earnings per share fell to 0.03 rupees from 0.77 rupees in 2024.

According to information available from the Pakistan Stock Exchange (PSX), Zephyr Textiles Limited did not declare any cash dividends, bonus shares, or right shares for the year ended June 30, 2025, maintaining a status of nil across these categories.

The company's un-appropriated profit carried forward was 1.52 billion rupees, slightly up from 1.49 billion rupees in 2024. The current ratio, a key indicator of a company's ability to cover its short-term liabilities with its short-term assets, was reported at 0.97 for 2025, showing a small decline from 1.00 in 2024. The net margin also witnessed a very large or significant move down, recorded at 0.02% compared to 0.54% in 2024.

The financial results reflect a challenging year for Zephyr Textiles Limited, with significant declines in profitability despite stable sales figures.