AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Mehmood Textile Mills Ltd. (MEHT) hosted its annual analyst briefing today, presenting an overview of its financial performance for FY25 and outlining future projections. The company reported a significant increase in profitability, alongside a notable decline in revenue.
The textile manufacturer’s profitability witnessed a substantial rise, increasing by 3.9 times year-on-year to reach PkR978 million (Earnings Per Share: PkR32.6) in FY25. This is a stark contrast to the PkR250 million (EPS: PkR8.3) recorded in the same period last year. The increase in profitability has been attributed to reduced finance costs and a shift back to a normal tax regime.
Despite these gains, MEHT experienced a 14% year-on-year decline in revenue, which fell to PkR57.1 billion during FY25. This drop was primarily due to a 68% decrease in exports, driven by the company’s strategic pivot towards value-added segments in response to a global economic slowdown and heightened competitive pressures.
Looking forward, the first quarter of FY26 displayed promising signs, with profitability surging 2.7 times year-on-year to PkR250 million (EPS: PkR8.3). This improvement was supported by lower finance costs and enhanced operating margins.
The briefing, facilitated by AKD Securities Limited, emphasized MEHT’s ongoing efforts to adapt to market dynamics and maintain its financial health amidst challenging conditions.