Azgard Nine Limited (ANL), Pakistan's largest producer and exporter of denim garments, has posted a 13% drop in full year pre-tax profit.

But while profits fell to PKR1bn (US$12.5m) from PKR1.15bn the year before, sales at the company jumped by 53% to PRK10.1bn from PKR6.6bn. 

Export sales registered an increase of 51% and domestic sales were up by 53% during the period. The company's sales have increased by an average annual rate of 32% since 2001.

Azgard said rising interest rates, higher cotton and petroleum prices and double-digit inflation had caused the decline in profit.

ANL, formerly known as Legler Nafees Denim Mills Limited, last year made a foreign investment in Italy and acquired an Italian denim specialist company Montebello for EUR23.758m.

By Ahmed Abdullah.