GADT profit jumps more than fourfold to Rs1.31bn

January 31, 2025 (MLN): Gadoon Textile Mills Limited (PSX: GADT) has reported a significant profit for the period of Rs1.31 billion for the six months ending December 31, 2024, marking a significant increase of 411.79% compared to Rs255.67 million during the same period last year.

This surge in profitability was driven by strong growth in sales and cost optimization efforts, along with a notable reduction in finance costs.

The company recorded net sales of Rs37.76bn, a year-on-year increase of 11.45%.

Cost of sales also rose by 10.09%, totaling Rs34.47bn, while gross profit soared by 28.1% to reach Rs3.29bn.

In line with this growth, other income increased by 70.18%, contributing positively to the overall performance.

Despite a slight rise in distribution and administrative costs, the company managed to improve its bottom line due to a substantial reduction in finance costs by 31.50%, amounting to Rs1.42bn.

Other operating expenses also increased by 64.73%, though they were offset by the strong earnings performance.

Profit before income tax stood at Rs1.62bn, reflecting a remarkable growth of 456.04% compared to the previous year.

Gadoon Textile's earnings per share for the period reached Rs46.68, compared to Rs9.12 in 1HFY24, highlighting the company’s exceptional growth trajectory for the first half of FY25.

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