Kohinoor Textile Mills Sees Earnings Surge Amidst Strategic Gains

Lahore: Kohinoor Textile Mills Ltd (KTML) reported a significant financial upswing as FY25 earnings soared by 54% year-on-year, reaching Rs4.6 billion, the company revealed during its corporate briefing. The earnings boost was attributed to reduced power charges and finance costs, alongside robust performance in its cement operations.

KTML experienced a notable 14% increase in revenue from its weaving segment in FY25, driven by a 49% surge in exports. Meanwhile, the home textile and spinning segments saw marginal changes, with the former rising by 1% and the latter declining by 2.5%.

During the first quarter of FY26, KTML’s earnings skyrocketed by 386% from the previous year, primarily due to capital gains from Maple Leaf Capital Limited’s short-term equity investments. Management expressed confidence in achieving annual returns of 10-25% moving forward.

The company’s energy requirements for FY25 stood at 25.56 MWh, with 60% sourced from the national grid owing to decreased electricity rates from IESCO. The average cost per unit of energy declined by 11% to Rs30.5/kWh.

In the textile sector, KTML highlighted the current average cotton price at Rs15,000 per maund, a reduction from Rs16,000 during FY25. The management indicated a strategic inventory of raw materials sufficient for six months.

Looking ahead, KTML anticipates a decline in domestic yarn sales due to the impact of floods on crop yield and competition from cheaper Chinese yarn.