Gadoon Textile Mills Limited (GADT) reported earnings per share of PKR 85.33 for FY25, compared to PKR 28.35 in FY24. Furthermore, in 4QFY25, the company reported earnings per share of PKR 13.88, compared to earnings per share of PKR 18.44 in the same period last year (SPLY). In the near term, management does not anticipate significant export demand, primarily due to inconsistent policy implementation.
Company is replacing older energy-intensive machinery with more efficient equipment to enhance productivity and reduce operating costs. Furthermore, the Company aims to achieve 40 45% contribution from green energy in its total power mix by March 2026.
The reduction in U.S. tariffs on textile imports from 29% to 19%, coupled with the increase in export tariffs imposed on competing regional countries, has strengthened Pakistan’s competitiveness in global textile markets. In parallel, the removal of zero-rating on yarn imports under the Export Finance Scheme (EFS) is expected to further restore balance and enhance competitiveness within the domestic spinning industry, enabling local manufacturers to capitalize on improved export dynamics.
Following the EFS policy deferral from January, customers began building inventory in advance, leading to a slowdown in demand and higher stock levels. To manage this, the Company undertook aggressive sales, which temporarily weighed on margins. Going forward management expects strong performance from the dyeing and knitting segments, while spinning operations are likely to remain challenging in the near term.
Important Disclosures
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