Reliance Weaving Mills Limited ("RWML" or the "Company") is a publicly listed entity

RWML, the textile arm of the Fatima Group, was incorporated on April 7, 1990. The Company commenced operations as a small-scale weaving unit in Multan. In 1999, it strategically expanded its footprint in the textile value chain through backward integration by acquiring a spinning facility in Rawat, Rawalpindi.

The Company operates as a fully integrated yarn and fabric manufacturing facility, with an installed base of 94,896 spindles and 476 air-jet looms, respectively. The total energy requirement stands at 16 MW, which is primarliy met through solar energy and MEPCO. The production units are located at Fazalpur Khanewal Road, Multan (Multan Unit), and Mukhtarabad Chali Beli Khan Road, Rawat, Rawalpindi. ( Rawalpindi Unit). The registered office is situated on the 2nd floor, Trust Plaza, LMQ Road, Multan. 

Reliance Weaving Mills Limited has a concentrated ownership structure, with effective control vested in the Fatima Group, which collectively holds ~80.8% of the Company’s shareholding through individual shareholders and affiliated entities. The principal shareholders include Mr. Fazal Ahmed Sheikh (~25.73%), Mr. Faisal Ahmed Mukhtar (~25.60%), and Mr. Fawad Ahmed Mukhtar (~25.49%). The remaining shareholding comprises ~16.87% held by the general public, while institutional ownership includes the National Investment Trust (NIT), which holds ~1.92% of the outstanding shares.

The ownership structure is expected to remain stable over the foreseeable future, as no material changes have been observed in recent years. However, the formalization of documented succession planning would further strengthen the Company’s ownership framework.

The sponsors possess strong business acumen, supported by diversified exposure across multiple sectors beyond textiles, including fertilizers, sugar, commodities trading, mining, and energy. This diversified experience underscores their capacity to steer the Company through challenging macroeconomic conditions effectively.

The Company's financial strength derives from the financial muscles of the sponsoring group. The Fatima Group's appreciable business diversity exhibits its ability to support the Company in times of need.

The Board of Directors comprises eight members, including the CEO, with a composition of five non-executive directors, one executive director, and two independent directors. Six directors represent the Fatima Group. The governance framework is considered robust, reflecting the Company’s adoption of core principles of best corporate governance practices.

The Board of Directors is composed of highly accomplished leaders with extensive expertise in industrial management, corporate governance, and multi-sectoral growth. Chairman Mr. Fawad Ahmed Mukhtar is a veteran industrialist who has spent over 30 years scaling a major conglomerate, holding key leadership roles across the fertilizer, textile, and energy sectors while contributing to elite educational governance through the National Management Foundation (LUMS). Mr. Faisal Ahmed, the CEO, complements this with deep operational leadership as the head of several industrial entities and a focus on labor welfare. Mr. Shoaib Ahmad Khan, an Independent Director, brings over 40 years of specialized experience in government and development finance, offering critical expertise in public-private partnerships, financial restructuring, and dispute resolution, Mrs. Fatima Fazal, a Non-Executive Female Director, leverages her strategic roles within the Fatima Group and her active leadership in large-scale healthcare and educational philanthropy to provide a balanced, socially responsible perspective to the board. Together, they form a robust governing body defined by strategic foresight and a proven track record of institutional excellence

The Company has constituted four Board-level committees, namely: (i) Audit Committee, (ii) HR & Remuneration Committee, (iii) Risk Management Committee, and (iv) Nomination Committee. During FY25, the Board convened five meetings to oversee strategic and operational matters.

M/s ShineWing Hameed Chaudhri & Co., Chartered Accountants, serve as the Company’s external auditors. For the year ended June 30, 2025, the auditors have issued an unqualified opinion on the financial statements.

The Company follows a functional organizational structure, comprising the following departments: (i) Finance & Accounts, (ii) Production, (iii) Procurement, (iv) Marketing, (v) Administration & Human Resources, and (vi) Internal Audit. The respective Heads of Departments (HoDs) report directly to the CEO, ensuring a clear and streamlined reporting hierarchy.

Mr. Faisal Ahmed serves as the Chief Executive Officer of the Company. He also holds the position of Chief Executive Officer at Fatima Sugar Mills Limited and Farrukh Trading Company Limited, and is the Chairman of the Workers Welfare Board at Pakarab Fertilizers Limited. Mr. Ahmed is a Board Member of several organizations, including Fatima Fertilizer Company Limited, Fatimafert Limited, Fatima Electric Company Limited, Pakarab Energy Limited, Fatima Cement Limited, Fazal Cloth Mills Limited, Reliance Commodities (Private) Limited, and Air One (Private) Limited. He has previously served as the City Mayor and District Nazim of Multan and continues to play an active role in welfare and community development initiatives in the city. His public sector experience includes membership in the Provincial Finance Commission (Punjab), the Steering Committee of the Southern Punjab Development Project, and the Decentralization Support Program. He is supported by an experienced and professional management team. Mr. Waheed Ahmad is a seasoned Chartered Accountant with over 20 years of experience in finance, accounting, and strategic business planning. He holds leadership and management certifications from LUMS and possesses strong expertise in corporate finance, risk management, ERP systems, and budgeting.

The Company conducts periodic management meetings to identify potential challenges and formulate growth strategies. These meetings include a review of the Company’s operational performance and liquidity position. Additionally, ad hoc meetings are convened as needed to address operational bottlenecks, thereby ensuring efficiency and continuity in business operations.

The Company has implemented a robust technology infrastructure, including an Oracle-based ERP system, to ensure access to real-time information.

The Company maintains a documented ‘quality policy with a clear focus on customer satisfaction and commitment to excellence. The Company is accredited with many certifications for compliance with the following latest Quality Assurance Standards, including ISO 9001, Oeko-Tex Standard 100(AITEX Spain), Better Cotton Initiative (Switzerland), and Global Organic Textile Standard. The Company has an in-house internal audit department responsible for assuring the effectiveness and adequacy of the internal control and risk management framework.

During MY25, approximately 24.4 million MT of cotton was produced globally, compared to about 24.2 million MT in MY24. Throughout the year, low cotton production was observed in India and Pakistan. However, this was partly offset by increases in cotton production in China, the United States, and Brazil by roughly 9.7%, 19.4%, and 15.7%, respectively. China remains the largest producer and consumer of cotton worldwide (MY21-25). Pakistan's cotton output declined by approximately 30.7%, due to reduced cultivation area and a surge in duty-free imports of cotton and yarn, which disrupted domestic markets. Conversely, cotton imports increased by around 234.0% YoY during the same period to satisfy domestic demand (FY24: roughly 70.0% YoY decline). Cotton arrivals for FY24-25 totaled about 5.5 million bales. The target for cotton production in FY26 is set at approximately 10.2 million bales. The sector's rising dependence on imported cotton poses a supply-side risk. For FY25, imports accounted for approximately 35% of the cotton supply (-11% in FY24), adding about USD 1.27 billion (USD 448 million in FY24) to the country's import bill. Textile exports reached USD 17.9 billion in FY25, a modest rise from USD 16.7 billion the previous year, reflecting a 7.2% year-over-year growth. The largest contribution came from the composite and garments segment, at USD 14 billion, which included the weaving segment at USD 1.8 billion and the spinning segment at USD 0.7 billion. The production of cotton cloth in FY25 declined by approximately 0.7% year over year, reaching around 877.1 million square meters. During FY25, about 25.3% of the cotton cloth produced was exported (compared to roughly 27.2% in FY24), with the rest used for the domestic market. The country's fabric exports fell by approximately 4.4% in FY25 (FY24: up about 5.8% YoY), with approximately 23.4% of Pakistan's cotton cloth exports going to Bangladesh (compared to about 19.9% in FY24), followed by the USA with about 8.1% of cotton cloth exports (compared to approximately 7.8% in FY24). In FY25, the transition from the final tax regime to the normal tax regime is expected to affect the profitability of export-oriented units, with a 29% tax on profits and a super tax of up to 10%. The recent removal of GST exemption (Finance Bill, 2025) on textile inputs for exporters registered under the Export Facilitation Scheme (EFS) will offer tax protection and create a level playing field for domestic cotton and yarn producers. Currently, international cotton prices are higher than the price of locally produced cotton. The gap has widened to approximately 9.8 cents per pound (as of July 18, 2025), resulting in an average increase of about USD 36.8 per bale of imported cotton. A greater reliance on imported cotton could lead to higher raw material costs, ultimately impacting yarn prices and profit margins for the sector. Conversely, energy and finance costs are expected to stay within a range, given the projected reduction in interest rates and the absence of any major energy tariff increases. Considering the current climate change, flooding in major cotton regions, and shifting crop patterns, the target of approximately 10.2 million bales for FY26 appears challenging.

The company’s weaving capacity is amongst the highest in the country on a standalone basis with 476 looms and the spinning capacity stands at 94,896 spindles. 

The company’s net sales performance shows a modest year-over-year growth, rising from PKR 40,220 million to PKR 41,461 million, primarily driven by subdued pricing dynamics. Export sales remained relatively stable, increasing slightly by 1%, while local sales saw a healthier rise of nearly 3%, indicating stronger domestic demand. Fabric sales generated PKR 26,866mln, accounting for ~66.9% of total revenue.

In FY25, the Company's gross profit margin remained stagnant at 11.7% (FY24: 11.7%), constrained by high raw material and energy costs and limited pricing flexibility in a competitive local and export markets. The operating margin of the Company declined to 9.1% (FY24: 9.1%) driven by the inflationary pressure. The downward trajectory of policy rates has resulted in mitigated finance cost, improving net profitability to PKR 257mln in FY25 (FY24: PKR 120mln).

Going forward, the Company's management remains focused on enhancing profitability through cost transformations to optimize cost competitiveness. For that purpose, the Company has installed a 20 MW renewable solar system and a further 3MW is currently under installation. The Company is committed to modernizing and expanding its production line according to the rapidly evolving technology to produce international quality products. The Company has installed 8.064 spindles and upgradation of 17 looms to diversify its product and increased production efficiency.

The Company relies on short-term borrowings to fuel its working capital requirements. At end Sep'25, the net working capital days of the Company inclined to 110 days (Jun'25: 97days, Jun'24: 86days), primarily attributed to reduced inventory days (Sep'25: 108days, Jun'24: 89days). The Company's short term trade leverage stood at -1.0% ( Jun'25: -3.2%), depicting tight room for borrowings. At Sep'25, the Company's trade assets clocked at PKR 19,389mln ( Jun'25: PKR 16,752mln). 

At end Jun'25, the Company's FCFO declined to PKR 3,712mln (Jun'24: PKR 4,363mln, Sep'25: PKR 743mln), driven by a decline in EBITDA. However, the Company's interest coverage ratio marginally improved to 1.4x (Jun'24: 1.2x) owing to the decreased finance cost. (Jun'25: PKR 2,895mln, Jun'24: PKR 3,893mln, Sep'25: 644mln), while the debt coverage ratio stood at 0.8x ( Jun'24: 0.6x). 

The company maintains a highly leveraged capital structure, with a leverage ratio of 67.2% as of Jun'25 (Jun'24: 64.6%, Sep'25: 70.7%). Total borrowings clocked at PKR 21,142mln (Jun'24: PKR 18,421mln, Sep'25: PKR 25,148 mln). Short-term borrowings constitute 59.2% of the borrowing book, clocking at 12,526mln. The Company's equity base remained stable at PKR 10,310mln (Jun'24: PKR 10,085mln, Sep'25: PKR 10,430mln)