Gul Ahmed Textile Mills Limited announced a strong 79.1% increase in profits for the quarter ending June 2024, largely due to a sharp rise in other income. The company reported a net profit of Rs2.42 billion, a significant jump from Rs1.35 billion in the same period last year, despite facing a drop in its gross margins.
For the entire fiscal year 2023-24, Gul Ahmed earned a profit after tax of Rs4.73 billion, which was higher than the Rs3.99 billion it made in the previous year. The company’s revenue also saw a boost, rising by 20.5% to Rs38 billion. However, the cost of sales increased even more, by 27.4%, putting pressure on its profit margins. As a result, the gross margin dropped to 13.4%, compared to previous levels.
The standout factor in Gul Ahmed’s performance was the significant increase in other income, which shot up by an astonishing 2281.0% to reach Rs975.24 million. This spike in other income helped offset the impact of higher costs and contributed to the overall profitability of the company.
Despite challenges in maintaining margins, Gul Ahmed’s ability to generate higher revenue and other income highlights the company’s resilience and strategic financial management. The impressive profit growth reflects a positive outlook for the company moving forward.
The company’s financial results demonstrate its commitment to navigating market challenges and delivering strong shareholder value.
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