Masood Textile Mills Limited will raise Rs. 3 billion. They will issue a Sukuk. They told the stock market on Monday. The board agreed on this decision. They need money for working capital. They will get Rs. 3,000 million. This includes a Rs. 1,000 million option. They will work with banks. They will also work with financial institutions.
The company will make deals. These deals involve private Sukuk placement. They will talk to lenders and investors. They will also talk to other financial groups. The company will create securities. These secure the payment obligations.
They need to secure payment for the transaction. This includes lenders and investors. The company will follow all the needed steps. They will also create other securities. These securities ensure the lenders are paid. The company will do what the lenders and investors need.
Pakistan Textile Sector Sees Big Profit Drop
In the first quarter of 2024, Pakistan’s textile industry faced big problems. The sector struggled both in exports and domestic markets. Despite the KSE-100 breaking records, the Textile Composite sector saw a huge drop. Net profit fell 64.2% YoY to Rs5.27 billion. Last year, the profit was Rs14.72 billion.
Global economic issues hurt textile demand. Export levels stayed flat. Domestically, high energy costs and expensive financing increased business costs. Government taxes also added to the burden.
The textile sector’s sales revenue increased by 22.9% YoY. It reached Rs133.27 billion, up from Rs108.48 billion last year. Yet, rising energy costs and raw material prices reduced profit margins. The cost of sales jumped 35.0% YoY, lowering gross profit by 16.1% YoY to Rs21.63 billion.
Other income dropped by 20.8% to Rs2.79 billion. Last year, it was Rs3.52 billion. Selling and distribution expenses fell 27.9% YoY to Rs2.33 billion. This showed less effort in sales. Administrative expenses decreased by 52.1% YoY to Rs1.55 billion. However, other operating expenses soared by 379.1% YoY to Rs5.76 billion.
To read our blog on “Pakistan’s Textile Exports See April Slump,” click here