Pakistan's Nishat textile mill reports sales growth but profit decline

by:JIYALI     2021-07-31
Pakistan’s Nishat Textile Mills Co., Ltd. (NML) reported that its sales in 2007 were PKR 17 billion. The company’s sales performance in 2005 began to improve after a sharp drop in sales, and this year it has shown great growth.   Sales growth is attributable to the expansion of the company's production capacity for high value-added products, including sewing, dyeing and finishing. These departments have expanded their production capacity.   However, this does not represent the company’s net profit. The company's net profit this year is 16.74 billion rupees, which is an increase of 2.53% from last year's 16.34 billion rupees.   Sudden fluctuations in the domestic cotton market, high raw material costs, increased processing costs, and higher natural gas prices have all reduced the company’s profits.   Nishat Textile Mill completed a major expansion in fiscal year 2007. The company has added finishing equipment and is expanding its sewing, dyeing and finishing capabilities. This is a key measure to improve the company's competitiveness and maintain performance growth.  Nishat Textile Mills Company is the largest comprehensive textile enterprise in Pakistan. The company's public float in the capital market is approximately 44.1%. However, due to the appreciation of the rupee, NML's rate of return decreased.  The government announced that the presumptive tax on textile exports would be reduced from 1.5% to 1.0%. In addition, spinning companies have been allowed to get more loan conversions that companies need in this year's budget. The government's measures to promote the development of the textile industry and expand exports, coupled with the incentives and trade policies proposed in the recent budget, will help NML continue its development and make the company the most outstanding company in the Pakistani textile industry.
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