Karachi: Gul Ahmed Textiles Mills Ltd. (GATM) convened an analyst briefing to reveal its financial performance for the first nine months of fiscal year 2025 and outline its strategic objectives moving forward. The company reported a 13.3% increase in sales to PKR 119.1 billion, driven by higher export sales. However, earnings fell by 7.5% to PKR 2.1 billion due to escalating costs.

The company’s gross margins contracted to 10.9%, down from 11.5% in the same period last year, primarily due to increased energy costs. Nevertheless, GATM management expressed optimism for improved margins, attributing this to a robust order book and a focus on value-added products. The company also anticipates favorable U.S. trade terms will facilitate its expansion in North America.

GATM projects a 7-8% growth in export revenues for the year, aiming to conclude FY25 with exports between USD 380-390 million. Rising gas bills, which increased from PKR 350 million to PKR 1.1 billion over the past two to three years, have prompted the company to invest in solar, wind, and other energy sources. By FY28, GATM plans to become fully self-reliant in power, gas, and water, targeting a 95-100% recycling rate for its water usage.

The company’s total power requirement stands at 40MW, with the average energy cost around US¢9 per kWh. Currently, 60% of its fuel mix is heavy fuel oil, while the rest is gas and renewables. GATM aims to boost the renewable share to 35-40% by next year. Most of its cotton—over 80%—is imported from Brazil to ensure quality for the export market.

Regarding its IDEAS Initial Public Offering (IPO), the management stated it would be listed when the timing is deemed appropriate. Profits are being reinvested into expansion and sustainability projects, with the aim of achieving Zero Liquid Discharge by FY28 through upgrading its Effluent Treatment Plants (ETP) and increasing recycling capacity to 1.1 million gallons per day, thereby reducing environmental impact.

GATM’s stock currently remains outside of formal coverage by analysts.