AN Textile Mills Returns to Profit in First Quarter of FY2027
AN Textile Mills Limited Reports Rs6.84 Million Profit for September Quarter
AN Textile Mills Limited has reported a return to profitability for the first quarter ended September 30, 2026, posting a net profit of Rs6.84 million compared with a loss of Rs23.79 million in the same period last year.
According to the company’s financial results submitted to the Pakistan Stock Exchange (PSX), earnings per share (EPS) improved to Rs0.71 against a loss per share of Rs2.46 recorded in the corresponding quarter of the previous year.
The company’s revenue stood at Rs1.07 billion during the quarter, compared with Rs1.28 billion in the same period last year, reflecting a decline in overall sales. Cost of sales also decreased to Rs1.03 billion from Rs1.24 billion.
Consequently, gross profit reached Rs36.11 million, compared with Rs42.10 million in the corresponding period last year.
Despite lower revenue and gross profit, the company managed to improve its bottom line through lower operating expenses and a significant contribution from other income. Other income increased to Rs23.73 million from just Rs1,000 in the same quarter last year.
Distribution expenses declined to Rs2.34 million from Rs3.15 million, while administrative expenses decreased to Rs17.80 million from Rs25.64 million.
Finance costs, however, increased to Rs13.18 million compared with Rs10.53 million in the previous year’s corresponding quarter.
AN Textile Mills recorded a profit before levy and taxation of Rs26.52 million, against Rs2.78 million a year earlier. After accounting for a levy of Rs13.38 million and taxation of Rs6.30 million, the company reported a net profit of Rs6.84 million.
The company’s financial position also showed changes during the quarter. Total assets stood at Rs2.33 billion as of September 30, 2026, compared with Rs2.05 billion at June 30, 2026. Total equity increased to Rs1.06 billion from Rs1.05 billion.
The company’s cash and bank balances were recorded at Rs17.12 million at the end of September 2026, compared with Rs15.92 million at the close of June 2026.
However, the cash flow statement highlighted pressure on operating activities. Net cash used in operating activities amounted to Rs141.30 million during the quarter, compared with net cash generated of Rs22.09 million in the corresponding period last year. The company also reported net cash generated from financing activities of Rs124.93 million, mainly reflecting increased short-term borrowings.
Separately, the Board of Directors decided not to announce any cash dividend, bonus shares or right shares for the quarter ended September 30, 2026.
The latest results indicate that AN Textile Mills has returned to profitability despite lower sales. Investors will be watching the company’s ability to sustain earnings growth, manage financing costs and improve operating cash flows in the coming quarters.
