Faisal Spinning Mills Limited (FASM) reported loss per share of PKR 26.93 for FY25, compared to PKR 138.38 in FY24. Furthermore, in 1QFY26, the company reported loss per share of PKR 9.22, compared to loss per share of PKR 40.69 in the same period last year (SPLY).
The Spinning division comprises 38,280 spindles, while the Weaving unit operates 265 air-jet looms. The Finishing segment, located in Punjab, has a production capacity of 33 million meters. The finishing capacity expansion has been completed and is expected to become fully operational within a month.
Following this upgrade, capacity will increase from 3.0 million meters to 3.3 million meters, reflecting a 10% enhancement. Management highlighted that a substantial influx of Chinese imports, particularly yarn and fabric under the Export Facilitation Scheme (EFS), is exerting considerable pressure on the domestic market. In Faisalabad specifically, an estimated 60% of market share is now captured by imported Chinese cotton cloth, leaving only 40% for local mills.
Financing costs increased during the period due to elevated cotton inventory levels. However, management anticipates a notable reduction in borrowing costs in FY25–26 as inventories normalize and new cotton priced at approximately 80 cents per pound versus $1.10 earlier. The company is also adding 4 MW of incremental solar capacity to further improve its energy mix and cost efficiency. Management expects profitability to begin improving from April (FY25–26). Margins are likely to remain constrained until March due to the existing blend of higher-cost cotton and newly sourced lower-cost cotton gradually coming into production.
Important Disclosures
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