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 5,000 stitching machines—demonstrate strong production scalability. The Company’s total energy requirement stood at ~17 M.W, which is primarily met through FESCO and captive generators.

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 (11.01%), National Bank of Pakistan (6.72%), NIT and ICP (3.29%) & general public (~9.33% ). 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. The management team is headed by the CEO, Mr. Shahid Nazir Ahmad. He 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.

The textile exports of the country reached USD 16.7bln in FY24, a slight increase from USD 16.5bln in the previous year, reflecting a growth of 0.93% YoY. The highest contribution came from the composite and garments segment at USD 9.1bln, followed by the weaving segment at USD 6.5bln and the spinning segment at USD 1.0bln. During 6MFY25, the textile exports stood at USD 9.1bln. In FY25, the transition from the final tax regime to the normal tax regime is set to impact the profitability matrix of export-oriented units, with a 29% tax on profits and a super tax of up to 10%. The consistent decline in policy rates over the last two quarters, along with the anticipation of further reductions, is expected to provide a cushion in the financial metrics of the industry. The Company has established its footprints in the textile product market over a period of ~ 04 decades. The Company's topline is dominated by the exports segment. During FY25, the company's topline recorded PKR 59.2bln (FY24: PKR 58.6bln), primarily attributable to improved sales volumes, as the Company adopted a profit-centric strategy marked by a shift in product positioning—from basic to higher-margin, fashion-oriented garments. The sales from exports inclined to PKR 50.7bln in FY25 (FY24: PKR 46.1bln), whereas the local segment witnessed a decrease (FY25: PKR 8.5bln, FY24: PKR 12.6bln). Exports are primarily volume-driven, with the USA as the top destination, followed by Germany, Sri Lanka, and other countries. JCPenney Purchasing LLC remains the Company's top customer during the period, contributing ~19.6% to the Company's topline. During 1QFY26, the Company's revenue clocked at PKR 12.8bln. During FY25, the Company's gross margins declined to 15.2% (FY24: 16.2%) mainly due to unfavourable product price dynamics as the Company shifts its product mix towards fashion-oriented garments. The operating margin dipped to 7.4 % (FY24: 9.1%). The Company's finance cost trimmed down and clocked at PKR 3,858mln (FY24: PKR 5,000mln). The Company has reported a net profit of PKR 131mln during FY25, with the net margin of 0.2% (FY24: -0.8%). During 1QFY26, the Company's gross and net margins stood at 17.5% and 1.6% respectively as profit after tax clocked at PKR 204mln.  A biomass power generation and solar power plant project is under consideration to optimize energy costs. MTM has a research and development Centre in Humen, China strives to achieve rapid introduction of new and improved products by adopting a disciplined and customer-focused approach to product development.

During FY25, the Company’s net working capital cycle extended to 152days (FY24: 145days), primarily due to an increase in inventory holding period (FY25: 96 days; FY24: 89 days). The working capital requirements were financed through a combination of internally generated cash flows and short-term borrowings. The Company’s short-term trade leverage stood at 18.5% during FY25 (FY24: 11.0%), while the current ratio was maintained at 4.5x (FY24: 3.4x). During 1QFY26, the Company's net working capital cycle stood at 184days. During FY25, the Company generated FCFO of PKR 4,964mln (FY24: 6,155mln), attributable to a decline in EBITDA.  Over the years, the fluctuating trend in finance costs (FY25: PKR 3,858mln, FY24: PKR 5,000mln) has impacted the coverage of the Company as the Company's interest coverage and debt coverage ratio clocked at 1.4x and 1.0x, respectively. During 1QFY26, the Company's FCFO clocked at PKR 1,173mln as interest coverage and debt coverage ratios stood at 1.7x and 1.2x, respectively. During FY25, the equity base of the Company stood at PKR 17.1bln (FY24: PKR 16.7bln). The Company operates in a highly leveraged capital structure of 60.7% (FY24: 60.1%), and it is dominated by short-term borrowings of PKR 22.7bln (FY24: PKR 22.1bln) to fuel working capital requirements. During 1QFY26, the Company's leveraging stood at 59.2%. 

Masood Textile Mills Limited (“MTM” or the “Company”) issued a PKR 2,000 million Rated, Privately Placed & Secured Islamic Certificate (“Sukuk”) in Sep-24 to fund permanent working capital needs. The Sukuk is secured by a First Joint Pari Passu hypothecation charge on present and future fixed assets (excluding land, buildings, and assets with specific charges) with a 25% margin. A Finance Payment Account (FPA) under exclusive lien of Participating Institutions will be funded monthly to ensure full installment coverage 10 days before each due date. The 5-year Sukuk, including a grace period of up to 9 months, offers quarterly profit payments at 3MK + 1.75%, with principal repaid in 17 equal quarterly installments by Sep-29.

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

The Sukuk will be secured by way of a First Joint Pari Passu hypothecation charge over all present and future Fixed Assets (excluding land and building) of the Company present on the Specific Properties (excluding assets with specific charges in favour of a creditor) with 25% margin.