• Profit falls 77%
  • Hit by borrowing rates
  • Sales up 22%

Pakistan textile firm Nishat Mills Limited said its annual profit dropped by 77%, despite improved sales.

The company reported profit of PKR1.3bn (US$15.6m) for the year ended 30 June, from PKR5.8bn in the prior year period.

Sales increased 22% to PKR23.8bn compared with PKR19.6bn last year, while the cost of sales jumped to PKR19.5bn from PKR16.7bn.

The board said devaluation of local currency played a key role in increasing the sales volumes.

However, increase in borrowing rates, minimum wages of workers, gas tariffs and halted Research and Development (R&D) subsidies hit profit.

By Ahmed Abdullah.