Profits of recorded Textile Companies Jump to 32%

In the first half of the fiscal year 2020-21 against the corresponding period of the previous fiscal year. The profits recorded by Pakistan’s listed textile companies jumped 32%. Primarily due to higher sales and lower finance cost.

Moreover, according to a report of Topline Securities, “The textile sector’s profitability has shown a significant increase during the first half of the fiscal year 2021 on a year-on-year basis primarily due to a spike in textile exports, improvement in other income and decline in finance cost.”

Alternatively, companies based on minimum market share capitalisation of Rs1 billion, filtered by the research house. Which included 21 firms in its sample. The recorded enterprises represent 82% of the textile sector’s market capitalisation.

Furthermore, as per the IFRS and exchange gains observed on net foreign asset exposure. Other income of the companies included in the sample increased 22% in Jul-Dec 2020 mainly due to re-measurement gains booked on the gas infrastructure development cess (GIDC).

Finance cost declined 14% year-on-year in the first half of FY21, which was attributed mainly to lower interest rates.