IBFL posted a net profit of PKR 1.08 billion (EPS: PKR 3.47) in 1QCY25, up 197% YoY compared to PKR 362.46 million (EPS: PKR 1.17) in SPLY. During the period, the company commenced a modernization project for its Textile Plant I – Unit II, aimed at fully replacing the existing yarn manufacturing facility with advanced machinery sourced from leading global textile equipment manufacturers. IBFL installation of a 1.13 MW solar power plant in 1QCY25, bringing the total installed solar capacity to 3.54 MW. Additionally, the company commissioned an eco-friendly gas-based power plant that provides both electricity and steam to meet the requirements of its polyester plant, supporting cost-effective and environmentally conscious operations.
Sales revenue declined by 18% YoY to PKR 120.67 billion in CY24. Gross profit margin improved slightly to 8.1%, compared to 7.5% in the previous year. The revenue mix comprised 64% from polyester and 36% from yarn. Polyester production increased to 248,633 MT in 1QCY25 from 159,243 MT in SPLY. Yarn production also grew to 74,932 MT, up from 70,477 MT in the previous year. The installed production capacity stands at 390,600 MT for polyester and 78,100 MT for yarn. Long-term financing stood at PKR 3.18 billion as of CY24. Profit before taxation and levies reached PKR 4.03 billion in CY24, slightly higher than PKR 3.82 billion in the previous year.
Management cited volatility in crude oil prices and the influx of low-cost imports under the EFS scheme and insufficient anti-dumping enforcement as key challenges impacting production costs and domestic market competitiveness. Unpredictable changes in fiscal policies, tariffs, and import regulations were also noted as major concerns.
Despite external headwinds, management expects a limited impact from global tariff and trade tensions. The company aims to expand its market share through policy engagement, particularly around anti-dumping enforcement and EFS rationalization. Operational priorities include energy efficiency, workforce optimization, adoption of Industry 4.0 technologies, and streamlined inventory management.
Management indicated that current profitability will be prioritized for capital expenditures, with dividend distributions planned subsequently
Important Disclosures
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