AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Tata Textile Mills Ltd. (TATM), a leading textile spinning company, reported a significant decline in its fiscal year 2025 results during an analyst briefing today. The company, which operates manufacturing units in Karachi, Kotri, and Muzaffargarh, attributed the decrease in revenue to several economic challenges.
According to the briefing, TATM’s topline revenue fell to PKR 41.2 billion, marking a 10% year-on-year decrease from PKR 45.8 billion in the previous fiscal year. The decline was primarily due to the imposition of the Export Facilitation Scheme (EFS), which shifted the company’s focus toward yarn sales and resulted in reduced revenue at the beginning of the year.
The company also reported a drop in gross margins, which decreased to 5.6% from 7.3% in FY24. This decline was driven by increased energy prices and rising raw material costs, exacerbated by a scarcity of cotton that forced the company to rely more heavily on imports.
The analyst briefing provided insights into the operational challenges faced by TATM and highlighted the broader economic factors impacting the textile industry. As the company navigates these challenges, its focus remains on adapting strategies to address the evolving market conditions.