Chenab Ltd ( F.Y. 2024-25)
Executive Summary
Chenab Limited is a textile company based in Pakistan involved in the production and exportation of fabrics, clothing and textile products. In the nine months ending March 31, 2025, Chenab Limited realised total revenues amounting to Rs. 1.875 billion; however, because of the high cost of energy, financial charges, and tough economic environment, the company incurred losses amounting to Rs. 448.83 million. Chenab Limited has been making efforts to revitalise itself by way of financial restructurings and sponsor support, among others.
Company Overview
Chenab Limited is a publicly held textile company based in Pakistan, operating in the stock exchange of Pakistan. The company makes, processes, sews and exports value-added textiles. The registered office of Chenab Limited is situated in Faisalabad, Pakistan. The manufacturing units of this company operate in Faisalabad and Nankana Sahib. This company mainly concentrates on the production of export-oriented textile products.
Industry overview
The textile sector is one of the largest industries and exporters in Pakistan, adding much to the country’s economy, employment generation, and foreign exchange revenues. The textile sector comprises spinning, weaving, processing, garments, and other value-added textiles. Exports-oriented textile units have concentrated on fabrics, garments, and home textiles products in the international market. In 2025, there were a number of challenges for the textile sector like rising cost of energy, inflation, increasing financial expenses, uncertainties in politics, and international market competition. Nonetheless, textile enterprises still concentrate on their exports, production efficiency, and diversified products.
Financial Performance(in Rupees)
Particulars | 2025 | 2024 |
Sales | 449,678,991 | 825,763,679 |
Cost of sales | (506,858,884) | (824,797,051) |
Gross (loss) | (57,179,893) | 966,628 |
Other income | 8,195,885 | 12,558,923 |
(48,984,008) | 13,525,551 | |
Operating Expenses | ||
Selling and distribution expenses | (5,522,589) | (28,219,073) |
Administrative expenses | (53,931,419) | (69,332,722) |
Finance cost | (48,324,018) | (58,538,491) |
(107,778,026) | (156,090,286) | |
(Loss) for the period before levies and income tax | (156,762,034) | (142,564,735) |
Levies | (2,655,296) | - |
(Loss) before taxation | (159,417,330) | (142,564,735) |
Provision for taxation | - | (5,234,627) |
(Loss) for the period | (159,417,330) | (147,799,362) |
(Loss) per share- Basic and diluted | (1.39) | (1.29) |
Source :- Annual Report 2025 of Chenab Ltd.
Key Financial Ratio
Ratio | 2025 | 2024 |
Net Loss Margin | -23.93% | -12.54% |
Current Ratio | 0.45:1 | 0.74:1 |
Debt-to-Equity Ratio | -21.78 | 212.03 |
Gross Profit Margin | -4.62% | -1.91% |
Loss Per Share(Rs.) | (3.90) | (2.62) |
Source :- Annual Report 2025 of Chenab Ltd.
SWOT Analysis
Strengths 1.This company was established to operate in export – oriented. 2.This company has a variety in business like fabrics, garments, textile made-ups, processing, and stitching. 3.This company has a strong asset base including property, plant, and equipment. 4.Thus company has large production facilities in Faisalabad and Nankana Sahib. | Weaknesses 1.There are continuous financial losses and accumulated losses. 2.There are high debt levels and heavy finance costs. 3.This company depends upon bank and restructuring plans. 4.There is a decline in sales revenue during 2025. |
Opportunities 1.There is growth in global demand for textile and garments exports. 2.This company improves through debt restricting and revival plans. 3.Through global markets and value-added. 4.Through banking facilities this company may improve working capital and its operation | Threats 1.There is high energy and production costs. 2.There can be political and economic uncertainty in Pakistan. 3.There can be global tariff wars and international competition. 4.There can be fluctuations in exchange rate and inflation. |
Conclusion
Chenab Limited is continuously facing financial losses. This company has operational challenges due to declining sales , high energy costs, finance expenses, and economic uncertainty. During F.Y.2025 this company faces financial losses and maintains a weak liquidity position. However, this company is working to improve its business through debt restructuring , sponsor support, disposal of non-core assets, and improving its export operations. This company continuously improves its financial support and effective management strategies, the company's aim is to strengthen its operation and achieve long-term stability and growth in the textile industry.