CFL has reported loss per share of PKR 62.47 in FY25 (LPS FY24: PKR 61.08). Furthermore, in 1QFY26 the company reported LPS of PKR 6.27 (LPS 1QFY25: PKR 7.77). The management noted that the FY25 was not favorable for the textile industry. Key challenges faced by the company and the industry include economic slowdown post-COVID, high interest rates, high power prices, uneven variation in raw material prices, and general economic uncertainty. These factors led to significant losses across the industry. The Nooriabad unit has been temporarily suspended.
Currently, the company is operating and planning to continue operations only at the Punjab plant. The management intends to reconsider operating the Nooriabad unit once the company achieves profitability. Going forward, the primary focus of the future strategy is to maintain quality (which is reported as already high in the market) and significantly reduce operation costs to improve profitability.
The company is actively working on strategies to counter the recent losses and ensure continued operations. CFL plans to install 3 megawatts (MW) of solar capacity at Unit 2 (Punjab). This investment aims to reduce operational costs and is expected to improve profitability.
The solar installation is anticipated to replace approximately 10% to 20% of the company’s power costs. Management expects the positive results of these strategic initiatives to be visible in the next quarter or subsequent quarters, predicting an end to the current losses at gross level.
Important Disclosures
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