Gul Ahmed (GATM) April–June 2025: Earnings Preview

Gul Ahmed Textile Mills (GATM), a well-known name in Pakistan’s textile industry, is set to report its financial results for April–June 2025 (4QFY25). The company is expected to show stronger profits compared to the previous quarter, but still lower than last year’s performance.

Expected financial results

• Profit After Tax (PAT): PKR 1.4 billion
• Earnings Per Share (EPS): PKR 1.91
• This is 46% lower than the same quarter last year, mainly because of higher tax expenses.
• Compared to the previous quarter, profits are expected to be 8% higher, thanks to reduced borrowing costs.

Revenue growth

GATM’s revenue is expected to be PKR 46.6 billion, which is:

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• Up 3% from last year
• Up 3% from last quarter
  The growth is driven mainly by selling more goods (higher volumes).

Margins & costs

• Gross Margin: Expected at 18.7%, unchanged from last year and last quarter.
• Finance Cost: Projected at PKR 1.7 billion, down 16% YoY and 10% QoQ, due to lower interest rates.

Taxes are eating into profits

One of the biggest drags on earnings this quarter is the Effective Tax Rate (ETR), expected to be 39%, much higher than last year’s 12%. This has significantly reduced net profits despite higher sales.

Source: Insight Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →