Quetta Textile Mills LimitedPSX: QUET

Financial Result for the Quarter Ended 2025-09-30

· Issued by Quetta Textile Mills Limited
‌1st QUARTER ACCOUNTS FOR THE PERIOD ENDED SEPTEMBER 30, 2025 (UN-AUDITED) QUETTA TEXTILE MILLS LIMITED


‌CONTENTS

Director's Report to the Members (English)

2

Director's Report to the Members (Urdu)

3

Condensed Interim Statement of Financial Position

4

Condensed Interim Statement of Profit or Loss (Un-audited)

5

Condensed Interim Statement of Other Comprehensive Income (Un-audited)

6

Condensed Interim Statement of Cash Flows (Un-audited)

7

Condensed Interim Statement of Changes in Equity (Un-audited)

8

Notes to the Condensed Interim Financial Statements (Un-audited)

9

1





‌DIRECTORS' REPORT

Assalam-e-Alaikum

Dear Shareholders:

We present to you the results of the company for the quarter ended September 30, 2025.

OPERATION RESULTS

Your company made a pre-tax loss of Rs.191.401 (M), as compared to the corresponding last year's Quarter pre-tax loss of Rs. 150.372 (M). Turnover for the Quarter ended was Rs. 255.8593 (M), as compared to corresponding last year's Quarter sales of Rs. 180.383 (M). Pre-tax loss as a percentage comes to 74.81% for the Quarter ended on September 30, 2025, as compared to 83.36 % which was corresponding last Quarter pre-tax loss as a percentage.

The textile industry of Pakistan is still facing multiple crises, such as very high electricity and gas prices, and high cost of doing business. Therefore, it is crucial for the Government to take action and make concerted efforts to lower electricity and gas rates at reasonable level in order to ensure the continued viability of the industry.

Despite the operational and financial hardships, the directors are committed to running the company. Discussions are in process with banks to find a mutually agreed repayment plan.

I would like to thank all the staff and workers of the company for their confidence and efforts shown towards the company.

On behalf of the Board of Directors.

Tariq Iqbal Omer Khalid


Chief Executive Officer Director

Karachi:

Dated: October 30, 2025

2





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‌QUETTA TEXTILE MILLS LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 2025

30thSep 2025

30thJune 2025

ASSETS

Note

Rupees (Un-Audited)

Rupees (Un-Audited)

NON CURRENT ASSETS

Property, plant and equipment

2

10,306,851,403

10,347,238,781

Long term deposits

63,463,433

63,463,433

10,370,314,836

10,410,702,214

CURRENT ASSETS

Stores and spares

575,535,856

577,383,241

Stock in trade

3

2,364,763,671

2,563,064,391

Trade debts

211,768,594

271,413,807

Advances, deposits, prepayments abd other receivable

727,824,948

710,312,664

Tax refund due from governments

69,098,362

68,215,289

Other financial assets

66,653,300

66,659,335

Cash and bank balances

1,219,511

8,354,836

4,016,864,243

4,265,403,563

14,387,179,079 14,676,105,777

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized capital

20,000,000 (June 30, 2024: 20,000,000) ordinary shares of Rs. 10 each

200,000,000

200,000,000

15,000,000 (June 30, 2024: 15,000,000) preference shares of Rs. 10 each

150,000,000

150,000,000

350,000,000 350,000,000

Issued, subscribed and paid-up capital

130,000,000

130,000,000

Reserves

(5,603,012,741)

(5,424,915,884)

Equity portion of Loan from directors and others

212,728,470

212,728,470

Revaluation surplus on property, plant and equipment

7,277,403,989

7,293,906,140

2,017,119,718

2,211,718,726

NON CURRENT LIABILITIES

Long term finances Redeemable capital - Sukuk

Liabilities against assets subject to finance lease

468,343,338

-3,249,994

468,343,338

-3,249,994

Deferred liabilities

47,279,244

49,875,715

518,872,576

521,469,047

CURRENT LIABILITIES

Trade and other payables

6,797,706,690

6,914,444,594

Accrued mark-up

1,033,771,531

1,033,771,531

Short term borrowings

1,742,412,861

1,743,068,909

Loan from directors and others Current portion of

Long term finances

109,316,357

1,509,606,437

109,316,357

1,509,606,437

Redeemable capital - Sukuk

611,335,643

611,335,643

Liabilities against assets subject to finance lease

7,041,344

8,124,676

Unclaimed dividend

36,468

36,468

Provision for taxation

39,959,454

13,213,389

11,851,186,785

11,942,918,004

CONTINGENCIES AND COMMITMENTS

4

14,387,179,079

14,676,105,777

The annexed notes from 1 to 8 form an integral part of these financial statements.



Chief Executive Director Chief Financial Officer 4

‌CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

30thSep 2025 30thSep 2024

Note

Rupees

Rupees

Sales

255,859,109

180,383,631

Cost of sales

5

(437,335,313)

(325,635,804)

Gross (loss)

(181,476,204)

(145,252,173)

Other income

618,096

4,186,824

(180,858,108)

(141,065,349)

Distribution cost

(365,008)

(670,102)

Administrative expenses

(8,615,631)

(8,601,588)

Finance cost

(1,562,022)

(35,009)

(10,542,661)

(9,306,699)

(Loss) before taxation

(191,400,769)

(150,372,048)

Provision for taxation Current tax - current period

(3,198,239)

(2,254,795)

Deferred

-

-

(3,198,239)

(2,254,795)

Net (loss) for the quarter

(194,599,008)

(152,626,843)

(Loss) per share - basic and diluted

(14.97)

(11.74)

The annexed notes from 1 to 8 form an integral part of these financial statements.



Chief Executive Director Chief Financial Officer

5

‌CONDENSED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

30thSep 2025 30thSep 2024 Note Rupees Rupees

Net (loss) for the quarter (194,599,008) (152,626,843) Other comprehensive income

Items that may not be reclassified subsequently to profit and loss account:

(Income)/loss on remeasurement of staff retirement benefits

-

-

Impact of deferred tax

-

-

Other comprehensive income/(loss) for the quarter

-

-

Total comprehensive (loss) for the quarter

(194,599,008)

(152,626,843)



The annexed notes from 1 to 8 form an integral part of these financial statements.



Chief Executive Director Chief Financial Officer

6

‌CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

Note

30thSep 2025 Rupees

30thSep 2024 Rupees

CASH FLOWS FROM OPERATING ACTIVITIES

(Loss) before taxation

(191,400,769)

(150,372,048)

Adjustments for:

Depreciation

40,387,378

44,538,335

Finance cost

1,562,022

35,009

Provision for gratuity

-

3,968,606

41,949,400

48,541,950

Profit/(loss) before working capital changes

(149,451,369)

(101,830,098)

(Increase) / decrease in current assets

Stores, spare parts and loose tools

1,847,385

1,725,421

Stock in trade

198,300,720

(210,468,787)

Trade debts

59,645,213

84,875,668

Advances, deposits, prepayments and other receivable

Other financial assets

(17,512,284)

6,035

(120,276)

-

69

(Decrease) / increase in current liabilities

242,287,068

(123,987,905)

Trade and other payables

(116,737,905)

301,045,357

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations

(23,902,206)

75,227,355

Long term deposits

-

-

Interest paid

(1,562,022)

(35,009)

Gratuity paid

(2,596,470)

(6,228,056)

Taxes paid

22,664,753

(66,376,543)

18,506,261

(72,639,608)

Cash flows from operating activities

(5,395,944)

2,587,747

CASH FLOWS FROM INVESTING ACTIVITIES

-

-

-

-

Purchase of property, plant and equipment

Proceeds from disposal of property, plant and equipment

Cash (used in) investing activities - -

CASH FLOWS FROM FINANCING ACTIVITIES

Long term finances

-

(930,000)

Short term borrowings

(656,048)

(367,667)

(1,739,380)

(1,297,667)

Net increase/(decrease) in cash and cash equivalents

(7,135,324)

1,290,080

Cash and cash equivalent at the beginning of the quarter

8,354,836

5,779,938

Cash and cash equivalent at the end of the quarter

1,219,512

7,070,018







The annexed notes from 1 to 8 form an integral part of these financial statements.

Chief Executive Director Chief Financial Officer 7

‌QUETTA TEXTILE MILLS LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

Share Capital

Reserves Equity portion Revaluation

of Loan from surplus on Accumulated

Share Capital Total equity

premium reserve General reserve Sub total directors and property, plant profit / (loss)

others and equipment

R u p e e s

Balance as at June 30, 2024

as previously reported (Audited)

130,000,000

651,750,000

1,200

115,000,000

766,751,200

212,728,470

7,104,771,535

(4,944,148,596)

3,270,102,609

Net (loss) for the quarter

-

-

-

-

-

-

-

(152,626,843)

(152,626,843)

Other comprehensive (loss) for the quarter

-

-

-

-

-

-

-

-

-

Revaluation surplus on property, plant and equipment

-

-

-

-

-

-

-

(152,626,843)

(152,626,843)

(incremental depreciation) - net of deferred tax

-

-

-

-

-

-

(18,502,484)

18,502,484

-

Balance as at September 30, 2024 (Un-Audited) 130,000,000 651,750,000 1,200 115,000,000 766,751,200 212,728,470 7,086,269,051 (5,078,272,955) 3,117,475,766

Balance as at June 30, 2025

as previously reported (Un-Audited)

130,000,000

651,750,000

1,200

115,000,000

766,751,200

212,728,470

7,293,906,140

(6,191,667,084)

2,211,718,726

Net (loss) for the quarter

-

-

-

-

-

-

-

(194,599,008)

(194,599,008)

Other comprehensive (loss) for the quarter

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(194,599,008)

(194,599,008)

Revaluation surplus on property, plant and equipment (incremental depreciation) - net of deferred tax

-

-

-

-

-

-

(16,502,151)

16,502,151

-

Balance as at September 30, 2025 (Un-Audited) 130,000,000 651,750,000 1,200 115,000,000 766,751,200 212,728,470 7,277,403,989 (6,369,763,941) 2,017,119,718

The annexed notes from 1 to 8 form an integral part of these financial statements.



Chief Executive Director Chief Financial Officer

8

‌NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2025

  1. SELECTED EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS

    1. The Company was incorporated in Pakistan as a public limited Company in January 29, 1970 under the Companies Act, 1913 (repealed) (now The Companies' Act 2017) as a public limited company. The shares of the Company are listed on Pakistan Stock Exchange. The registered office of the company is situated at ground floor Nadir House I.I Chundrigarh road Karachi. The company is principally engaged in manufacturing and sale of Yarn and Fabric.

    2. Geographical location and address of business units

      Registered Office Nadir House, Ground Floor, I.I. Chundrigar Road, Karachi.

      Sub Office 7-8/A, Justice Sardar Iqbal Road, Gulberg V, Lahore.

      Mills P/3, S.I.T.E., Kotri.

      B/4, S.I.T.E., Kotri.

      49 K.M., Lahore, Multan Road, Bhai Pheru.

    3. Going concern assumptions

      During the period, the Company incurred loss amounting to Rs. 194.599 million (June 30, 2025: loss of Rs. 1,304.026 million) and has reported accumulated losses amounting to Rs. 6,369.763 million (June 30, 2025: Rs. 6,191.667million) at the period end. Accordingly, it resulted into equity of Rs 2,017.119 million in current period (June 30, 2025: Rs.2,211.718 million). In addition, the Company's current liabilities exceeded its current assets by Rs. 7,834.322 million (June 30, 2025: Rs.7,677.514 million) at the period end. The main reason of low profits was due to significant decline in both local and global market, the Company is currently unable to resume operation at full capacity. The Company has initiated its operations at only 30% of total capacity.

      These financial statements have been prepared by the management on going concern basis on the grounds that the Company will be able to achieve satisfactory levels of growth in the future based on the plans drawn up by the management for this purpose.

      To substantiate its going concern assumption:

      1. The management has prepared two years future plan showing positive growth in terms of stronger sales of yarn and fabric, as can be seen in financials of finacial year June 2025 and quarter financials of September 2025.

      2. The weaving mill continues operation of conversion by doing job work and is also doing direct sales of fabric. the management anticipates better operational efficiencies , plant utilization and sales .

      3. The management has also undertaken adequate steps towards the reduction of fixed cost and expenses which are at various stages of implementation. Such steps include, but not limited to, rightsizing of the men power, resource conservation, close monitoring of other fixed cost etc. The management is certain to generate sufficient savings as consequences of adapting all such measures.

        The management anticipates that above steps will not only bring the Company out of the existing financial crisis but also contribute significantly towards the improvement of the company financial position in the foreseeable future.

    4. These condensed interim financial information have been prepared in accordance with the International Financial Reporting Standards, International Accounting Standards (IAS) 34: Interim Financial Reporting as notified under the Companies Act, 2017 and the directives issued under the Act and in compliance with the requirement of section 237 of the Companies Act, 2017 and Rule Book of the Pakistan Stock Exchange

    5. This condensed interim financial information has been prepared under 'historical cost convention' modified by:

      • certain items of property, plant and equipment which have been included at revalued amount;

      • financial instruments at fair value; and

      • recognition of certain staff retirement benefits at present value

    6. The accounting policies and methods of computation followed in the preparation of the 1st Quarterly financial statements are the same as those of the published annual financial statements for the year ended June 30, 2025

      9

      NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)

      FOR THE QUARTER ENDED SEPTEMBER 30, 2025

  2. PROPERTY, PLANT AND EQUIPMENT

    Note

    (Un-audited) (Un-audited)

    30thSep 2025 30thJune 2025

    ------------- Rupees -----------

    Operating assets 2.1 10,306,851,403 10,347,238,781

    10,306,851,403 10,347,238,781

    1. The cost of acquisition and disposal to operating assets during the quarter ended September 30, 2025 were as follows:

      (Un-audited) (Un-audited)

      30th Sep 2024 30th June 2025

      Acquisition Disposal Acquisition Disposal Cost Cost

      ----------- Rupees -----------

      ----------- Rupees -----------

      Owned assets

      Plant & machinery

      -

      -

      6,018,000

      -

      Office equipment & Furniture & fixture

      -

      -

      -

      -

      Vehicles

      -

      -

      -

      -

      Total - - 6,018,000 -

  3. STOCK IN TRADE

    The carrying value of pledged stock is Rs. NIL (June 30, 2025: Rs. NIL).

  4. CONTINGENCIES AND COMMITMENTS

    There has been no significant change in the contingencies and commitments since the last audited financial statements except as disclosed in note

    4.1 and 4.2 respectively.

    1. Contingencies

      (Un-audited) (Un-audited)

      30thSep 2025 30thJune 2025

      -----------Rupees -----------

      Bank Guarantee issued by bank on behalf of the company 104,073,007 104,073,007 There is no changes in the legal cases other than those enclosed in the annual financial statement as on June 30, 2025.

    2. Commitments (Un-audited) (Audited)

      Confirmed letter of credit in respect of: 30thSep 2024 30thJune 2024

      -----------Rupees -----------

      Raw material & spare parts - -

      10

      NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)

      FOR THE QUARTER ENDED SEPTEMBER 30, 2025

  5. COST OF SALES

    (Un-audited) (Un-audited)

    30thSep 2025 30thSep 2024

    -----------Rupees -----------

    Raw material consumed

    -

    37,892,513

    Salaries, wages and benefits

    68,691,975

    114,115,246

    Stores and spares consumed

    3,107,870

    2,995,198

    Fuel, power and water

    120,962,216

    285,437,280

    Rent, rates and taxes

    338,523

    315,831

    Insurance expenses

    -

    245,911

    Repairs and maintenance

    787,313

    713,413

    Vehicle running and maintenance

    3,041,570

    1,913,228

    Entertainment expenses

    1,085,195

    502,592

    Communication expenses

    82,348

    175,406

    Printing and stationery

    29,520

    73,420

    Subscription

    393,935

    364,000

    Travelling

    27,000

    184,008

    Other expenses

    99,750

    12,750

    Depreciation expenses

    40,387,378

    37,649,364

    239,034,593

    482,590,160

    Work in process

    Opening stock

    -

    70,787,321

    Closing stock

    -

    (53,111,229)

    -

    17,676,092

    Cost of goods manufactured

    239,034,593

    500,266,252

    Finished goods

    Opening balance

    2,362,113,891

    2,705,765,691

    Closing stock

    (2,163,813,171)

    (2,880,483,139)

    198,300,720

    (174,717,448)

    437,335,313 325,548,804

  6. TRANSACTIONS WITH RELATED PARTIES 479,335,315 (42,000,002)

    (Un-audited) (Un-audited)

    30th Sep 2025 30th Sep 2024

    -----------Rupees -----------

    Transactions with related parties Relationship

    Salaries and other employees benefits Key management personnel 1,695,000 795,000

    The CEO has decided to waive off their salary during the period.

  7. DATE OF AUTHORIZATION FOR ISSUE

    These condensed interim financial information have been authorized for issue on October 30, 2025 by the board of directors of the company.

  8. GENERAL





Figures have been rounded off to the nearest rupees.



Chief Executive Director Chief Financial Officer

11

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If undeliver please return to:

Quetta Textile Mills Limited

Head Office : Nadir House, Ground Floor

I.I Chundrigar Road, Karachi-74000 Phone ; (021)32414334-36

Email: sale@quettagroup.com Web : https://www.quettagroup.com

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