October 27, 2025 (MLN): Gul Ahmed Textile Mills Limited (PSX: GATM) reported a profit after tax of Rs307.1 million for the quarter ended September 30, 2025, marking an 8.3% decline from Rs334.9m recorded in the same period last year.

Earnings per share (EPS) dropped 8.9% year-on-year to Rs0.41, compared to Rs0.45 in 1QFY24.

The company’s net sales stood at Rs48.78 billion, slightly down by 0.3% from Rs48.92bn in the corresponding quarter of the previous year. Meanwhile, cost of sales declined 1.9% to Rs41.73bn, leading to a gross profit of Rs7.04bn up 10.4% from Rs6.38bn in the same period last year. Consequently, the gross margin improved to 14.4%, compared to 13.0% in 1QFY24.

Operating expenses increased, with administrative costs surging 30% year-on-year to Rs2.09bn, while selling and distribution expenses fell marginally by 2.4% to Rs2.74bn. Other operating costs were recorded at Rs71.1m, down 7.1% compared to Rs76.5m last year.

Other income, however, dropped sharply by 59.9% to Rs413.3m from Rs1.03bn in 1QFY24, impacting overall profitability. As a result, operating profit declined 12.4% to Rs2.56bn from Rs2.92bn previously.

Finance costs decreased 21.1% year-on-year to Rs1.76bn, showing lower borrowing costs or improved financial management. Consequently, profit before levies and income tax increased 15.4% to Rs799.8m, while levies fell 16.5% to Rs430.4m.

After accounting for taxation of Rs62.3m, the company recorded a profit after tax of Rs307.1m, compared to Rs334.9m in the prior-year quarter.

The quarterly results indicate that despite improved gross margins and reduced finance costs, lower other income and higher administrative expenses weighed on Gul Ahmed’s bottom line during the period.