Home Corporate Masood textile to issue Rs 5billion Sukuk raise funds

Masood textile to issue Rs 5billion Sukuk raise funds

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In Karachi it is the positive impact of an enormous currency decrease of around 35% in the past 15 months has started evolving as zero-rated export sectors, mostly the textile industries are reporting a surge in export orders, prominent many companies to increase their operations.

Masood Textile Mills is a vertically joined textile manufacturing firm, based in Faisalabad, has declared in a notification sent to the Pakistan Stock Exchange (PSX) that it will problem of  Rs5 billion worth of Sukuk bonds. It said the firm was proposing the Islamic bond to increase funds to meet its working capital requirement.

When a firm builds its working capital, it resources it is anticipating higher orders,” said an industry source requesting privacy. Corporations need working capital to achieve their day-to-day functions and by raising the amount from the marketplace, Masood Textile looks to be performing very well.

After the rupee depreciation, prices of Pakistani products have to convert attractive and domestic corporations have started getting more orders. It is said by the All Pakistan Textile Mills Association’s former chairman Mr Yasin Siddique the Overall situation of the textile sector is better now as order notebooks of the firms are full.

Masood Textile recorded in 2018 a turnover of Rs30.85 billion against Rs23.38 billion last year, according to the company’s yearly report. The firm earned a net profit of Rs1.11 billion with a strong increase of 25.48% against the previous year.

It is said by the company record Currency reduction has given a chance to the company to regain its product footprint in the global market.

The development in textile exports is mainly attributed to rupee reduction, which has helped get more orders for exporters from the international marketplace. Knitted garments in the textile group showed 11.36% increase in exports, in the term of dollars from July to February, according to the Pakistan Bureau of Statistics.

According to the Masood Textile report, the rupee reduction has also affected the imported raw material cost because of a rise in prices of basic raw material.

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