Knitting Views’ Post

The textile traders made representation on three major points. First, postpone the implementation of the rules for a year. Second, small and big traders should be included under MSMEs while enforcing this rule. The third major demand of the textile traders was to extend the time limit of payment from 45 days. Fostta Fostta Nirmala Sitharaman #TextileTraders #MSMEs #IncomeTaxAct #WeavingIndustry #FOSTTA https://lnkd.in/g72RZF49

NADEEM TEXTILE MILLS LTD (PSX: NATM) posted 30.29 percent year-on-year growth in its topline in 1HFY24. However, high cost of sales particularly elevated energy tariff and other input and conversion charges pushed down gross profit by 32.15 percent in 1HFY24 with GP margin moving down from 8.77 percent in 1HFY23 to 4.57 percent in 1HFY24. Administrative expense slid by 9.64 percent in 1HFY24. The main component of NATM’s administrative expense is payroll expense, hence in the absence of detailed financial statements we can assume that the company might have rationalized its workforce to squeeze its administrative expense. Selling expense grew by 25.66 percent in 1HFY24 due to company’s efforts to expand its market share locally and internationally. 81 percent lower other expense incurred by NATM in 1HFY24 could be the result of no profit related provisioning. Other income posted paltry 4.32 percent growths in 1HFY24. All these factors translated into 43 percent thinner operating profit in 1HFY24 with OP margin of 2.04 percent versus OP margin of 4.66 percent in 1HFY23. Finance cost multiplied by 9.22 percent in 1HFY24 due to unparalleled level of discount rate. As a consequence, NATM posted net loss of Rs.245.55 million in 1HFY24, up 91.38 percent year-on-year. Loss per share also climbed up from Rs.7.16 in 1HFY23 to Rs.11.55 in 1HFY24. To know more about the past performance and future prospects of NADEEM TEXTILE MILLS LTD follow the link to my published analysis https://lnkd.in/e-CssZGX

SHADAB TEXTILE MILLS ltd (PSX: SHDT) recorded 22.36 percent year-on-year growth in its topline during 9MFY24. Overall demand remained suppressed due to higher prices of raw materials, Pak Rupee depreciation, and elevated energy tariffs. However, during the 2nd and 3rd quarters of FY24, Pak Rupee began to gain momentum. The company increased the prices of its products to absorb high costs. This resulted in 111.94 percent higher gross profit in 9MFY24 with GP margin moving up from 3.04 percent in 9MFY23 to 5.26 percent in 9MFY24. Distribution expenses shrank by 69.54 percent in 9MFY24 while administrative expenses also posted a paltry 0.54 percent uptick during the period. Profit-related provisioning stood at Rs.5.966 million in 9MFY24. Other income enhanced by 351 percent during 9MFY24 supposedly due to higher profit on bank deposits. Operating profit magnified by 532.84 percent during 9MFY24 with OP margin clocking in at 3.36 percent versus OP margin of 0.65 percent recorded in 9MFY23. Finance costs tumbled by 2.57 percent during 9MFY24 due to lower outstanding borrowings. SHDT recorded a net profit of Rs.77.416 million in 9MFY24 versus a net loss of Rs.76.557 million posted during the same period last year. EPS stood at Rs.4.66 versus a loss per share of Rs.4.61 in 9MFY23. SHDT’s NP margin clocked in at 1.46 percent in 9MFY24. To know about the past performance and future prospects of SHADAB TEXTILE MILLS ltd follow the link to my published analysis https://lnkd.in/dkHUBSHA

Rahim Textile Mills Limited, part of New Asia Group, plans to expand its capacity and increase annual revenue by 24%. The expansion involves installing new dyeing machinery and accessories at its existing factory, with an investment of Tk13.73 crore funded through internal generation and loans. After incurring a Tk12.47 crore loss in FY 2022-23 due to high raw material prices and utility costs, the company returned to profit in the current fiscal year, reporting Tk60 lakh in gains from July to March. The new machinery will boost production capacity and sales, enabling higher product prices and better margins. #RahimTextileMillsPLC #NewAsiaGroup #BusinessInvestment #BusinessNews #BusinessPost #BusinessHubs #BusinessGrowth #BusinessInsights #BusinessBangladesh #IndustryInsights #IndustrialNews #BusinessBrillianz

Gul Ahmed Textile Mills Limited reported a 79.1% increase in profitability for the quarter ending June 2024, driven by a substantial rise in other income. The company achieved a net profit of Rs2.42 billion, up from Rs1.35 billion in the same quarter last year, despite a decline in gross margins. For the full fiscal year 2023-24, Gul Ahmed posted a profit after tax of Rs4.73 billion, compared to Rs3.99 billion the previous year. Revenue grew by 20.5% to Rs38 billion, though the cost of sales surged by 27.4%, causing gross margins to fall to 13.4%. Notably, other income soared by 2281.0% to Rs975.24 million, significantly boosting overall profitability. . . #GulAhmed #TextileIndustry #FinancialGrowth #ProfitIncrease #BusinessPerformance #RevenueGrowth #PakistanEconomy #CorporateFinance #dailydawns

You will find in my previous posts where i shared study of 11 years of Yarn Industry Conclusion was stable cotton prices is good for Industry. (If you want that report message me personally) Now what’s happening GHCL Textile said in earnings -Stable cotton prices GHCL textile Q4FY24 9.8% Q3FY24 7.8% Q4FY23 NA Investor presentation -Spinning industry is poised for better performance in medium term on back of demand enquires from downstream segment and moderation in cotton price from peak Nitin Spinner in earnings call -Stable cotton prices Now if you see company’s margin improved Nitin Spinner Q4FY24 14.5% Q3FY24 13.7% Q4FY23 10.8% Volume of Yarn (in MT) Q4FY24 21244 Q3FY24 19508 Q4FY23 15298 So volume has risen QoQ and YoQ Sales Realisation per MT Q4FY24 2.68 lac Q3FY24 2.69 lac Q4FY23 2.92 lac Now with what seem for Yarn Industry is Wise increased volume also Realisation was maintained Investor presentation Nitin Spinner -Was a consolidation year for the Industry However if we see last 2 weeks price in China for Cotton Yarn fallen down by 2% And infact GHCL textile management also told the same however also told it seems temporary.. And also note that Textile players mostly Yarn/Fabric company are at comparative low valuation.. So does all the above points indicate worst is behind for them? Looks that way.. Well time will tell . Together we learn🙏 Note: Just for educational purposes. I am not SEBI Registered. Always consult your financial expert for taking any decision on my or any1 else views🙏 #Equityresearch #Sharemarket

In 2024, Bannu Woollen Mills Limited (PSX: BNWM)’s net sales deteriorated by 14.2 percent. This was on account of the squeezed purchasing power of consumers leading to lower demand. The company shut down its plants multiple times during the year due to fewer orders. Cost of sales shrank by 14.59 percent in 2024, resulting in 13.1 percent thinner gross profit recorded by the company in 2024. On the positive front, the company was able to drive up its GP margin to 26 percent in 2024 by revising the prices of its products in accordance with hiking costs. Operating expense multiplied by 11.96 percent in 2024. While distribution expenses dropped during the year owing to curtailed sales volume, administrative expenses succumbed to inflationary pressure. Other expenses fell by 93.65 percent in 2024 possibly due to lesser provisioning done for ECL. Other expense was wiped off by 25.41 percent improved other income recorded by BNWM in 2024. This could be the result of higher profit earned on PLS accounts due to higher discount rates. Operating profit tapered off by 45.7 percent in 2024 with OP margin sliding down to 6.6 percent. Finance costs mounted by 30.34 percent in 2024 primarily due to the higher discount rate. As per 9MFY24 report posted by the company, its outstanding short-term liabilities have fallen owing to lesser working capital requirements. During the year, BNWM incurred a share of loss of Rs.111.92 million from its investment in the associate company, Janana De Malucho Textile Mills Ltd. However, its impact was conveniently offset by the reversal booked on impairment loss on investment in associate. This was the result of the “Market Value of Net assets approach” adopted by the company to provide more accurate value of its investments. BNWM booked a reversal of Rs.446.51 million on impairment loss in 2024. This resulted in net profit of Rs.306.21 million in 2024 as against a net loss of Rs.343.16 million posted by the company in the previous year. EPS stood at Rs.32.21 in 2024 versus loss per share of Rs.36.10 posted last year. NP margin was recorded at 34.4 percent in 2024. To know about the past performance and future prospects of Bannu Woollen Mills Limited Bannu Woollen Mills Ltd follow the link to my published analysis https://lnkd.in/ex4yq3QT

Based on strong order flow and increasing demand, Tamil Nadu’s readymade garment exporters are expected to enjoy an 8–10 per cent increase in income to Rs. 43,000 crore this fiscal year, according to a report. After two years of reduced demand and muted realisations, the industry in Tamil Nadu has shown indications of revival Jayashree Nandakumar, CRISIL Limited #garmentexporters #revenuegrowth #TamilNadutextile#crisil #CRISILRatings https://lnkd.in/g5Bu_iUR

Gul Ahmed Textile Mills Limited (PSX: GATM) unveiled its #profitability for 1HFY24, wherein the profit after tax dropped to Rs1.09 billion [EPS: Rs1.47] compared to a profit of Rs2.18bn [EPS: Rs2.94] in the same period last year (SPLY). Going by the results, the company's top line surged by 34.81% YoY to Rs83.74bn as compared to Rs62.11bn in SPLY. The cost of sales rose by 38.74% YoY but was lesser than proportionate to sales decline, which improved the gross profit by 17.41% YoY to Rs13.45bn in 1HFY24. https://lnkd.in/dQzWVYD3 #PSX #textile #earnings

Textiles Minister Giriraj Singh announced that the government has sanctioned a production-linked incentive (PLI) scheme exceeding Rs 10,000 crore for the textiles industry, with plans under consideration to extend it to the garments sector. Additionally, he highlighted that the ministry is developing a strategy to surpass China in the textile sector. #textile #PLI #apparel #clothing #industry #expansion #growth #retail #latestnews