Zephyr Textiles Limited

According to Business Recorder, Zephyr Textiles Limited (PSX: ZTL) posted a net loss of Rs39.97 million for the first nine months of the current fiscal year, reversing a net profit of Rs10.47 million a year earlier. Net sales slid 11.95 percent to Rs5681.47 million as export orders weakened amid geopolitical tensions and sharper competition in global markets. The loss works out to Rs0.67 per share, compared with earnings of Rs0.18 per share in the same period last year.

Profit before tax edged up 10.86 percent to Rs38.798 million, but levy charges of Rs70.32 million pushed the company into a net loss. Gross profit declined 2.52 percent, yet the gross margin rose to 10.39 percent from 9.39 percent, which reflected a stronger tilt toward value-added products. Operating profit contracted 25.57 percent and the operating margin narrowed to 3.24 percent from 3.83 percent, while finance cost fell 31.58 percent on monetary easing despite a rise in both short-term and long-term loans.

Distribution expenses rose 10.40 percent on inflationary pressure and higher freight charges, while administrative expenses eased 2.84 percent and other income dropped 43.72 percent. The outlook section says the company is pushing into more export markets for value-added textiles and has expanded solar capacity at its towel unit from 450 kwh to 950 kwh, with another 358 kwh plant under way at its weaving unit.