Gadoon Textile Mills (F.Y. 2024-25)

Executive Summary

Gadoon Textile Mills Ltd. is a major textile manufacturing company in Pakistan, formed in 1988 by the Yunus Brothers Group. Gadoon is a textile mill manufacturing yarn, knitted beddings, colored cloth, and offering its dyeing service to its customers. They operate state-of-the-art plants in Swabi and Karachi, and their products are also exported to international destinations. During the financial year 2025, this organisation achieved remarkable growth due to effective production planning and low financing costs. The firm spent Rs. 5.7 billion in solar energy and new equipment for improved productivity and sustainability.

Company Overview

The Gadoon Textile Mills Ltd (GTML) was established in 1988 as part of the Yunus Brothers Group (YBG). GTML is considered one of the biggest spinning and textile manufacturing companies operating in Pakistan. The company operates within the textile industry and specializes in the manufacturing of yarns, knitted bed linen, dyed fabric, and dyeing services. It has manufacturing plants located at Swabi and Karachi, which have the latest technology-based equipment installed within them. GTML is exporting its products to various countries such as the USA, UK, China, Germany, Japan, and UAE. In addition to textiles, GTML is working in the dairy sector as well, where they have operations for the production of milk.

Industry overview

The textile industry is among the biggest and the most significant industries in Pakistan. It contributes greatly towards the GDP, export earnings, and jobs creation in Pakistan. Pakistan is a renowned name when it comes to cotton production, which enables Pakistan to grow spinning, weaving, knitting, dyeing, and garment industry in the country. The industry is highly regarded for generating foreign exchange due to exports of quality products to markets around the world, including the US, Europe, and Asia.There are several threats faced by the industry, which include inflation, high cost of energy, exchange rate, political uncertainty, and intense global competition, but there are some opportunities too, like increasing demand for quality textile products, adoption of advanced technology, and sustainable manufacturing practices in the industry. Companies in the textile industry are making substantial investments in modern machinery, renewable energy projects, and value added products.

Financial Performance(Rupees '000)

Profit and loss summary	June 30, 2025	June 30, 2024	Favorable / (Unfavorable)
Sales (net)	70,979,986	72,723,982	(2.40)
Gross Profit	6,326,054	5,017,444	26.08
Distribution Cost	887,641	894,348	894,348
Administrative Expenses	585,309	538,602	(8.67)
Other Operating Expenses	432,295	100,646	(329.52)
Finance Cost	2,523,731	3,974,220	36.50
Other Income	1,702,133	1,879,276	(9.43)
Profit Before Taxation	3,599,211	1,388,904	159.14
Profit After Taxation	2,391,904	794,548	201.04
Earnings Per Share (Rs.)	85.33	28.35

Source :- Annual Report 2025 of Gadoon Textile Mills.

Key Financial Ratio

Particulars	UoM	2025	2024
Profitability Ratios
GP to Sales	Percentage	8.91%	6.90%
EBITDA to Sales	Percentage	12.14%	10.34%
Return on Capital Employed	Percentage	21.61%	18.10%
Liquidity Ratios
Current Ratio	Times	0.88	0.94
Quick Ratio	Times	0.19	0.29
Operating Ratios
Inventory Turnover	Times	2.84	3.17
Debtor Turnover	Times	14.17	18.10
Creditor Turnover	Times	8.27	10.30
Market Ratios
EPS	Rupees	85.33	28.35
Price to Earning Ratio	Times	5.89	6.13
Cash Dividend Per Share	Rupees	-	-
Dividend Cover	Times	-	-
Price to Book Ratio	Percentage	38.30%	22.67%

Source :- Annual Report 2025 of Gadoon Textile Mills.

SWOT Analysis

Strengths

1.The company has a strong market position in the Pakistan textile industry.

2.The company has various product portfolios including yarn, bedding products, and dyed fabrics.

3.The company has a strong export network in international markets such as the USA, UK, and China.

4.The company is investing in energy projects for cost efficiency and sustainability.

Weaknesses

1.The company heavily depends on the textile sector and cotton availability.

2.There are high operational costs and energy costs.

3.Exchange rate fluctuations.

4.The company depends on international demand and export markets.

Opportunities

1.The company is growing in global demand for sustainable textile products.

2.Growing in the international markets.

Rising demand for value-added textile products.

3.Increasing the use of renewable energy and advanced technology.

Threats

1.High competition in global markets.

2.Inflation rate and economic instability.

3.Changes in government textile and export policies.

Conclusion

Gadoon Textile Mills Limited is one of the leading textile companies in Pakistan. This company has an existence in domestic as well as in international markets. The company has maintained its growth through efficiency operations, advanced technology, and a diversified product portfolio. The company has economic challenges , rising energy costs, and global competition. During F.Y.2025 , the company has improved its financial performance. The company is focusing on sustainability and long-term growth by investing in solar energy projects and modern machinery. The company has strong export markets, experienced management, and continuous innovation. The company is in a great position to increase its market share which helps Pakistan textile sector and economic development.