Dewan Khalid Textile Mills Limited reported a reduction in its net loss for the nine months ended March 31, 2025, according to its financial results submitted to the Pakistan Stock Exchange.
The company’s loss after taxation stood at Rs24.07 million during the nine-month period, compared with a loss of Rs33.58 million in the corresponding period of the previous year. This represents an improvement of around 28% in the company’s bottom-line loss. The financial results were approved by the company’s Board of Directors at a meeting held on August 20, 2026.
Operating losses remain a challenge
Despite the improvement in the overall loss, Dewan Khalid Textile Mills continued to face pressure at the operating level.
The company recorded a gross loss of Rs22.32 million for the nine months ended March 31, 2025, compared with a gross loss of Rs24.06 million in the same period a year earlier. Administrative and general expenses amounted to approximately Rs4.41 million, contributing to an operating loss of Rs26.73 million.
The company’s loss before taxation was also reported at approximately Rs26.73 million, while taxation amounted to around Rs2.66 million during the period.
Loss per share improves
The company reported a basic and diluted loss per share of Rs2.50 for the nine-month period, compared with a loss per share of Rs3.49 in the corresponding period of the previous year.
The improvement in per-share losses is consistent with the reduction in the company’s overall net loss, although the company remains in a loss-making position.
Financial position
The balance sheet shows that Dewan Khalid Textile Mills had total assets of approximately Rs722.70 million as of March 31, 2025, compared with Rs745.42 million at June 30, 2024.
Property, plant and equipment remained the company’s largest asset category, standing at approximately Rs711.66 million. Current assets were reported at around Rs11.04 million.
On the liabilities side, current liabilities stood at approximately Rs712.16 million, including trade and other payables, short-term borrowings and the current portion of the syndicated long-term loan.
The company’s accumulated losses increased to approximately Rs922.64 million, while total equity stood at a negative Rs32.53 million at the end of the reporting period.
Cash position shows modest improvement
The cash-flow statement provides some positive movement in the company’s liquidity position.
Dewan Khalid Textile Mills generated a net cash inflow of Rs116,848 from operating activities during the nine months ended March 31, 2025, compared with a net cash outflow of Rs3.38 million in the corresponding period.
Cash and cash equivalents increased from approximately Rs819,482 at the beginning of the period to Rs934,599 at March 31, 2025. The company reported no major cash inflow from investing activities during the period, while financing activities resulted in a small cash outflow of Rs1,731.
No dividend or bonus shares announced
The company’s board did not recommend a cash dividend, bonus shares, right shares or any other corporate action alongside the financial results.
Overall, the results indicate that Dewan Khalid Textile Mills has managed to reduce its losses compared with the previous year, but its financial position remains challenging. High accumulated losses, negative equity and substantial liabilities continue to weigh on the company, while the modest improvement in operating cash flow and lower net loss provide limited positive signs.
The company’s ability to improve operations, strengthen its balance sheet and return to profitability will remain important factors for investors and other stakeholders going forward.
