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

Executive Summary

The Sapphire Textile Mills Limited is a major textile corporation of Pakistan which involves itself in such operations as spinning, weaving, finishing, home textiles, retail, and renewable energy projects. The corporation operates in association with the Sapphire Group of Companies and focuses on providing excellent textiles. For the period of 2024-25, the firm achieved a net turnover of Rs. 93.26 billion against Rs. 82.40 billion for the previous year. The profit after taxes was Rs. 3.95 billion. The company kept investing in renewable energy, sustainable cultivation of cotton, and adoption of new production technology. The corporation also gives importance to good corporate governance and social responsibility. It is involved in initiatives aimed at educating the employees and improvement of their well-being through provision of better health care facilities.

Company Overview

Sapphire Textile Mills Ltd was founded in 1969, while it currently trades on the stock market under Pakistan Stock Exchange. The firm belongs to the group of Sapphire and produces yarn, fabric, home textile items, and other textile goods. Its activities include spinning, weaving, processing, printing, retail and renewable energy branches. It also owns various companies in Pakistan and worldwide in the UK, UAE, Denmark and USA countries. The main principles of its activity are sustainability, innovation, and high-quality textile products development. The firm uses modern renewable energy sources for the enhancement of productivity and environmental performance.

Industry overview

Textile industry is one of the largest industries in Pakistan and is contributing a lot in terms of economic growth of the country through exports and employment. The textile industry includes spinning, weaving, processing, garments, and home textiles. The strength of the textile industry in Pakistan is its strong cotton industry and manufacturing capacity. For the year 2024-25, various factors were causing difficulties for the textile industry, including increased cost of energy, inflation, and higher taxes. Another factor affecting the textile industry was the low output of domestic cotton. On the positive side, demand for value-added textile products was still there for the industry.

Financial Performance(Rupees in “000”)

Particulars	2025	2024
Net Turnover	93,258,687	82,399,262
Gross Profit	12,733,690	11,062,973
Profit From Operations	11,350,590	13,240,037
Other Income	3,434,049	5,895,060
Finance Cost	(4,666,516)	(6,395,038)
Profit Before Taxation	6,684,074	6,844,998
Taxation	2,733,107	1,671,261
Profit After Taxation	3,950,967	5,173,737

Source :- Annual Report 2025 of Sapphire Textile Mills.

Key Financial Ratio

Particulars	UOM	2025	2024
Profitability Ratio’s:
Gross Profit to sales	Percentage	13.65	13.43
Net Profit to sales	Percentage	4.24	6.28
EBITDA to sales	Percentage	14.79	18.84
Liquidity Ratios:
Current ratio	Times	1.46	1.43
Quick / acid test ratio	Times	0.66	0.58
Capital Structure ratios
Financial leverage ratio	Times	0.92	0.94
Debt to equity ratio	Times	0.46	0.52
Interest cover ratio	Times	2.43	2.07
Investment / Market Ratio’s:
Earning per share	Rs. Per share	182.16	238.53
Price earning ratio	Times	6.57	5.61
Turnover Ratios:
Total assets turn over ratio	Times	1.04	1.04

Source :- Annual Report 2025 of Sapphire Textile Mills.

SWOT Analysis

Strengths

1.High vertical integrated into textile manufacturing activities.

2.Sapphire is a well- known retail brand in international markets.

3.The company invests in renewable energy which helps to reduce energy bills.

Weaknesses

1.The company highly depends on the textile performance sector.

2.During 2025 there is a decline in profit after tax .

3.The company depends on imported cotton due to lower local production.

Opportunities

1.Increasing demand for value added textile industry.

2.Growing exports in international markets such as the UK, UAE, and USA.

3.More focus on sustainability and eco friendly textile.

Threats

1.There is a high electricity and inflation situation in Pakistan.

2.Extreme competition in international textile markets.

3.Fluctuating in currency and economic instability.

Conclusion

Sapphire Textile Mills Limited is one of the leading textile companies in Pakistan. It has good operations in manufacturing, retailing, and renewable energy. There are many economic issues affecting the firm, including expensive energy, rising prices, and taxation. In 2024-2025, the firm experienced great growth in sales. The emphasis of the company on sustainability, innovation, renewable energy, and value-added textile products will help to improve its competitive position. The company also focuses on corporate governance, social responsibility and operational efficiency which support the company for long term growth and future expansion opportunities.