KARACHI: International Knitwear Limited (INKL) reported a sharp decline in profitability for the nine months ended March 31, 2026, as lower sales continued to weigh on the company’s financial performance despite notable improvements in gross profit margins.
According to the company’s latest financial results, net sales fell to Rs. 693.30 million, compared with Rs. 895.82 million during the corresponding period last year, reflecting a 22.6% decline. The drop in revenue was primarily driven by reduced export demand and weaker local sales amid challenging market conditions.
Gross profit, however, increased to Rs. 79.62 million from Rs. 76.56 million a year earlier. The company’s gross profit margin improved significantly to 11.5%, up from 8.5% in the same period last year, supported by better production efficiency, improved product mix, and tighter cost controls.
Despite the improvement in margins, profit after tax declined to Rs. 13.09 million, down 45.7% from Rs. 24.10 million reported in the corresponding period of last year. Earnings per share (EPS) also dropped to Rs. 1.35, compared with Rs. 2.49 previously.
The company noted that export sales decreased to Rs. 145.94 million from Rs. 381.29 million, while local sales increased to Rs. 544.54 million from Rs. 508.58 million. Management attributed the overall decline in revenue to subdued global demand for textile products, cautious buying by international customers, and ongoing macroeconomic challenges affecting consumer demand.
Finance costs increased during the period, mainly due to higher utilization of bank financing for operational needs. Meanwhile, the company also highlighted that investment portfolio volatility, influenced by developments in the Pakistan Stock Exchange and geopolitical uncertainties, affected unrealized gains on investments.
Looking ahead, the board acknowledged that the textile sector continues to face pressure from weak global demand, inflationary trends, volatile energy prices, and higher taxation. Nevertheless, International Knitwear plans to focus on expanding sales, improving operational efficiency, reducing costs, and strengthening profitability through better utilization of resources.
