Masood Textile Mills Limited (“MTM” or “the Company”) is a public limited company incorporated in 1984 under The Companies Act, 1913 (now Companies Act, 2017) and listed on the Pakistan Stock Exchange (“PSX”) in 1988. The Company was initially a spinning Company acquired from Mehmood Group in 1984. MTM after the inclusion of Chinese investors as strategic partners grew into a truly vertically integrated textile unit focusing on exports of value-added highly fashioned products. The principal business activity of the Company is the manufacturing and sale of cotton / synthetic fibre yarn, knitted and dyed fabrics, and garments. The Company’s vertically integrated operations—spanning 19,968 spindles for diverse yarns, 853 active and 143 seasonal knitting machines, and 4,500 stitching machines—demonstrate strong production scalability. The Company’s total energy requirement stood at ~17 MW, which is primarily met through FESCO and captive generators. The registered office of the Company is situated in Universal House, 17/1, New Civil Lines, Bilal Road, Faisalabad.

The Company's ownership is concentrated among a few major shareholders. Ms Nazia Nazir w/o Mr Shahid Nazir Ahmad has an ownership stake of ~ 30.17%, Chinese investors cumulatively hold a 37.09% stake. Directors hold a minimal 2.39%. The remaining shareholding mainly vests with Joint Stock Companies (10.86%), National Bank of Pakistan (6.72%), NIT and ICP (3.29%) & general public (9.48% ). The sponsors have a long-term association with the Company and the textile business. A formal documented succession plan will augment the ownership framework of the Company. Mr. Shahid Nazir Ahmad, CEO of Masood Textile Mills Limited, has been instrumental in transforming the Company from a spinning unit into Pakistan’s leading vertically integrated textile enterprise. His strategic leadership, backed by deep expertise in production, IT, marketing, and administration, has driven the Company’s sustained growth and operational excellence. The Company's financial stability stems from its disciplined single-line-of-business strategy, supported by long-term sponsor commitment. As a dedicated textile exporter, MTM has built enduring partnerships with leading global brands, ensuring consistent revenue streams and operational efficiency.

The Board is composed of seven members, including the Chairman and Chief Executive Officer. Among them, three serve as Nominee Directors—one representing NIT and two representing Shanghai Challenge Textiles Co. Ltd.—while two are Independent Directors. The inclusion of independent oversight has significantly enhanced the Company's corporate governance framework.  The Board of Masood Textile Mills Limited (MTM) comprises seasoned professionals with expertise in technology, textiles, finance, and global business. Chairman Mr. Naseer Ahmad Shah, an IT expert with 38+ years in ERP systems, provides strategic oversight. CEO. Mr. Shahid Nazir Ahmad, an MBA from London, has driven MTM’s growth into a leading vertically integrated textile enterprise. Nominee directors Ms. Chen Yan and Mr. Shibin Yang (Shanghai Challenge Textile Co. Ltd) contribute 20+ years of international textile leadership. Mr. Shoaib Ahmad Khan (National Investment Trust) adds banking and Islamic finance expertise, while Mr. Shahid Iqbal and Mr. Malik Shahid Mehmood bring decades of experience in finance, marketing, supply chain, and corporate strategy. The Board holds quarterly meetings with consistent participation from all members, reflecting their strong commitment to strategic oversight. Detailed minutes are diligently documented to ensure transparency and accountability. To support effective decision-making, the Board is assisted by four specialized sub-committees: the Audit Committee, Risk Management Committee, the Nomination Committee, and Human Resource & Remuneration and Sustainability Committee. Riaz Ahmad & Company Chartered Accountants are the external auditors of the Company. The auditor is listed in Category “A” of the State Bank’s panel of auditors. They have expressed an unqualified opinion on the financial statements of the Company for the year ended 30 June 2025. The Company has an in-house internal audit function.

The organizational structure demonstrates a clear hierarchy and a strong governance framework. The Board of Directors, led by the Chairman, provides strategic oversight, while the CEO manages core business functions. Key departments—Finance, HR, Marketing, Supply Chain, and Production—report directly to the CEO, ensuring streamlined operations. The CFO oversees financial planning, taxation, and MIS, while the Head of Production manages vertically integrated units: Processing, Apparel, Spinning, and Knitting. Independent Internal Audit enhances control and accountability. CEO. Mr. Shahid Nazir Ahmad, is supported by a highly trained, qualified, and experienced team. Mr. Tanveer Ahmad Siddiqui, CFO, is a seasoned finance professional with 32 years of experience. He completed his CA articles in 1990 with Riaz Ahmad & Co Chartered Accountants, and holds an MBA in Finance and a B.Com from the University of the Punjab. He plays a vital role in ensuring the Company’s financial stability. The management meetings are held periodically with a prime focus on the status of projected targets and feedback on the development and implementation of business strategies. The Company has developed an in-house centralized database system ERP (enterprise resource planning) for systems integration. The systems mainly categorized under the umbrella of ERP are Financial Accounting systems, Quality management systems, machine management systems, inventory management & production management systems etc. MTM produces each garment with a unique ID tracking number which is attached inside the garment, and it backtracks from cotton crop type, yarn, knitting, fabric processing, cutting, stitching operations & inspections to packaging and shipment. The Company has adopted LEAN Manufacturing best practices in its production facility by using RFID (Radio Frequency Identification) technology in its production lines. This RFID technology helps real-time production activity and item tracking.

MTML’s topline remains heavily concentrated in the export segment, reflecting its strong international market positioning. During FY25, the Company reported a topline of PKR 59.2bln, registering a modest growth of ~1.0% YoY (FY24: PKR 58.6bln). This increase was primarily driven by higher export sales which rose by 10% to PKR 50.6bln in FY25 (FY24: PKR 46.0bln), indicating improved sales and sustained demand in key international markets. The Company’s export sales are geographically diversified, with the United States, retaining the largest export destination, followed by Germany, Sri Lanka, and other international markets. This diversified presence across key regions supports revenue stability and reflects MTML’s strong penetration in global markets. Customer concentration, however, remains notable, with JC Penney Purchasing LLC continuing to be the Company’s largest buyer. During FY25, the Company’s gross margin contracted to 15.2% (FY24: 16.2%), primarily attributable to an uptick in salaries, wages, and employee benefits. Similarly, the operating margin settled at 7.4% (FY24: 9.1%). The Company’s finance cost declined to PKR 3.8bln (FY24: PKR 5.0bln), primarily due to monetary easing by the State Bank of Pakistan. Consequently, the Company posted a net profit of PKR 131mln in FY25, translating into a net margin of 0.2% (FY24: -0.8%). The turnaround at the net level is largely underpinned by the reduction in finance costs. During 6MFY26, the Company reported a topline of PKR 24.5bln (6MFY25: PKR 28.7bln). Despite the decline in revenue, the Company’s profitability profile improved, with gross and net margins expanding to 17.1% and 1.7%, respectively, reflecting gradual margin accretion driven by enhanced cost rationalization measures and improved operational efficiencies. Going forward, the Company’s ability to optimize its cost base and sustain operational efficiencies will remain critical to preserving profitability and supporting margin sustainability.

The Company’s working capital requirements are met through a combination of internal cash generation and bank borrowings. Net working capital days elevated to 152 days (FY24: 145 days), primarily due to increased inventory holding Period. Trade payable days declined to 36 days (FY24: 41 days), while trade receivable days slightly improved to 92 days (FY24: 96 days). During FY25, the Company generated FCFO of PKR 4.9bln (FY24: PKR 6.1bln), reflecting a moderation in internal cash flow generation. Accordingly, the Company’s interest coverage ratio improved to 1.4x (FY24: 1.3x), while the debt service coverage ratio (DSCR) remained constant at 1.0x (FY24: 1.0x). As of 6MFY26, working capital cycle stood at 195 days However, coverage metrics showed relative improvement, with interest coverage and DSCR standing at 1.6x and 1.1x, respectively, suggesting some stabilization. As of 6MFY26, the Company’s FCFO stood at PKR 2.2bln (6MFY25: PKR 1.9bln), primarily driven by an increase in profit before tax.
During FY25, the Company’s equity base marginally strengthened to PKR 17.1bln (FY24: PKR 16.6bln). The Company continues to operate with a highly leveraged capital structure, with the debt-to-capital ratio elevating slightly to 60.7% (FY24: 60.1%). The funding profile remains predominantly reliant on short-term borrowings, which stood at PKR 22.6bln (FY24: PKR 22.1bln), primarily utilized to finance ongoing working capital requirements. As of 6MFY26, the Company’s equity base stood at PKR 17.4bln, with leveraging of 60% and short-term borrowings amounting to PKR 23.4bln.

Masood Textile Mills Limited ("MTM" or the "Company") has proposed to issue a PKR 2,000 million Rated, Privately Placed & Secured Short-Term Sukuk ("Sukuk") to finance the Company’s working capital requirements. The Sukuk, arranged by Integrated Equities Limited ("IEL"), will be issued at a face value of PKR 1,000,000 per certificate or in multiples thereof, in the form of scrip-less securities, with profit payments to be made on a quarterly basis during the tenor. The 6-month (180-day) Sukuk will be redeemed in bullet at maturity, with principal and remaining profit payable at the end of the tenor. The instrument carries a pricing of 6-month KIBOR + 100 bps.

The claims of the Sukuk holders will rank superior to the claims of ordinary shareholders.

The Sukuk is secured by a ranking charge over the present and future current assets of the Company. A Debt Payment Account ("DPA") under the exclusive lien of the Investment Agent will be funded in four equal tranches of PKR 500 million each, commencing 30 days prior to maturity and concluding 1 day before the maturity date, ensuring the full issue amount of PKR 2,000mln is available in the DPA before the maturity date. The 6-month (180-day) Sukuk will be redeemed in bullet at expiry of tenor, with remaining quarterly profit and principal paid together at maturity at a rate of 6-months KIBOR + 100 bps.