The National Silk and Rayon Mills Limited has reported a net profit of Rs16.14 million for the period ended September 30, 2026, despite a decline in revenue and earnings compared with the corresponding period last year.
According to the company’s unaudited interim financial statements, revenue from contracts with customers stood at Rs561.10 million, compared with Rs643.22 million in the corresponding period of 2025. This represents a decline of approximately 12.8%, reflecting a challenging business environment for the company.
The company’s gross profit also decreased to Rs42.31 million from Rs45.95 million in the previous year’s corresponding period. Meanwhile, the cost against services provided amounted to Rs518.80 million, compared with Rs597.27 million previously.
Operating expenses remained relatively stable. Distribution costs increased slightly to Rs795,621 from Rs774,560, while administrative expenses reached Rs15.86 million against Rs15.65 million in the previous year. Other expenses also increased to Rs459,653 from Rs226,352.
The company recorded other income of Rs2.20 million, compared with Rs563,776 in the corresponding period last year. Finance costs increased considerably to Rs3.63 million from Rs970,109, adding pressure on overall profitability.
Profit before taxation stood at Rs23.75 million, compared with Rs28.86 million in the previous year. After accounting for taxation of Rs7.62 million, the company’s net profit reached Rs16.14 million, down from Rs20.07 million.
Earnings per share also declined to Rs1.04 from Rs1.29, reflecting the reduction in profitability.
Financial Position and Cash Flow
The company’s balance sheet showed total assets of approximately Rs2.38 billion as of September 30, 2026. Total equity increased to Rs1.72 billion from Rs1.70 billion at June 30, 2026.
Current assets stood at Rs764.72 million, while current liabilities amounted to Rs613.09 million. The company reported cash and bank balances of Rs44.54 million at the end of the reporting period.
The cash flow statement showed that operating activities used net cash of Rs4.18 million, compared with Rs62.07 million in the corresponding period last year. Investing activities generated net cash of Rs4.07 million, mainly reflecting proceeds from the sale of fixed assets. Financing activities resulted in a net cash outflow of Rs3.47 million.
Outlook
The latest financial results indicate that National Silk and Rayon Mills continues to generate profits, although lower revenue, rising finance costs and reduced earnings remain important challenges.
Going forward, the company’s performance will depend on its ability to improve revenue generation, manage operating expenses and control financing costs. Maintaining healthy cash flows and strengthening operational efficiency will also be important for supporting sustainable profitability.
Investors will be watching the company’s upcoming financial results to assess whether it can improve its earnings performance and maintain financial stability in the coming periods.
