Ibrahim Fibres Limited ('IFL' or 'the Company'), established as a Public Limited Company in 1986, is listed on the Pakistan Stock Exchange (PSX). As of the end of January 2025, the Company's free float stands at approximately 5.0%. The registered office of the Company is located at Ibrahim Centre, 1-Ahmed Block, New Garden Town, Lahore - 54600, Pakistan. 

Incorporated in 1986, Ibrahim Fibres Limited (IFL) is a publicly listed company on the Pakistan Stock Exchange (PSX) and a market leader in Polyester Staple Fiber (PSF) with a 73% market share. Over the years, the company expanded its operations by establishing additional spinning mills and a power generation company, which were later merged into a single entity, Ibrahim Fibres Limited, in 2000. IFL operates one of Pakistan’s largest integrated polyester production facilities, with a diversified portfolio spanning polyester fiber, textile yarn, and power generation. The company’s strategic focus on vertical integration, operational efficiency, and innovation has driven its long-term growth and industry leadership. With state-of-the-art manufacturing, a strong distribution network, and sustainable business practices, IFL remains a key player in Pakistan’s textile value chain, catering to domestic and international markets.

Ibrahim Fibres Limited specializes in the production and marketing of Polyester Staple Fibre (PSF) and blended yarns. The Company’s manufacturing facilities are strategically located in Shahkot, near Faisalabad. As of the latest available data, Ibrahim Fibres has a total polyester production capacity of approximately 390,600 tons per annum (TPA), while its spinning operations comprise around 240,192 spindles. 

The Ibrahim Group maintains a majority ownership stake of approximately 91.80% in Ibrahim Fibres Limited, primarily through its holding company, Ibrahim Holdings (Private) Limited.

The Ibrahim Group strategically established Ibrahim Holdings (Pvt.) Limited to oversee succession planning and optimize investment management across its subsidiary and associated companies, including Allied Bank Limited. This structured approach enhances corporate governance, ensuring financial stability and long-term sustainability for Ibrahim Fibres Limited.

The sponsors of Ibrahim Fibres Limited possess over five decades of extensive experience in the textile industry, complemented by professional expertise in banking, finance, and the power sector. This diverse industry exposure strengthens the Company’s strategic decision-making and operational resilience.

The Ibrahim Group maintains a robust financial position, with a strong net worth underpinning its business operations. The sponsors have consistently demonstrated both the willingness and capacity to support Ibrahim Fibres Limited, as evidenced by past financial assistance, including an interest-free loan to sustain operations. Additionally, the group holds a majority stake of approximately 90% in Allied Bank Limited, further reinforcing its financial strength and strategic influence in the banking sector.

Ibrahim Fibres Limited is governed by a seven-member Board of Directors, led by Chairman Mr. Sheikh Mukhtar Ahmad. The board structure comprises four representatives from the Ibrahim Group, ensuring strategic alignment with the majority shareholders, alongside two independent directors who contribute to enhanced corporate governance, oversight, and regulatory compliance.

Mr. Sheikh Mukhtar Ahmad, Chairman of both Ibrahim Fibres Limited and the Ibrahim Group, brings over 63 years of extensive experience in founding and successfully managing various industrial and financial enterprises. In addition to his leadership at Ibrahim Fibres, he serves on the boards of other group companies, contributing to strategic decision-making across the organization. The Board of Directors collectively possesses substantial industry expertise and diversified professional experience, with long-standing tenures that reinforce stability and continuity in the Company’s governance.

To ensure robust oversight, three key committees—Audit, Human Resources, and Nomination—are actively engaged in governance matters. Member participation in meetings remains consistently strong, reflecting a commitment to effective decision-making. Additionally, the Board facilitates a Directors’ Training Program throughout the year, designed to enhance the expertise and strategic acumen of its members, thereby enabling them to fulfill their responsibilities with greater proficiency and impact.

The external auditors of the Company, M/s. Yousuf Adil – Chartered Accountants, have issued an unqualified audit opinion on the financial statements for the period ending December 31st, 2023. Furthermore, it is noteworthy that the Company has transitioned its financial reporting period from a fiscal year to a calendar year. The audit for the calendar year 2024 (CY24) is currently in progress and will be finalized in due course.

Ibrahim Fibres operates with a well-defined, functionally departmentalized organizational structure, meticulously segmented into distinct units, including polyester production facilities, spinning plants, and power generation plants.

Mr. Mohammad Naeem Mukhtar serves as the Chief Executive Officer (CEO) of Ibrahim Fibres Limited, bringing over 38 years of in-depth experience in finance, industrial manufacturing, and corporate leadership. In addition to his role at Ibrahim Fibres, Mr. Mukhtar is the CEO of Ibrahim Holdings (Pvt.) Limited and holds directorial positions in several other companies within the Ibrahim Group, contributing his expertise in strategic oversight and organizational growth. Mr. Mohammad Naeem Asghar, the Chief Financial Officer (CFO) of Ibrahim Fibres, has been a key figure in the company for the past 34 years, with 12 years of dedicated service as CFO. His extensive experience in financial management, coupled with his deep understanding of the company’s operations, has been instrumental in navigating the financial complexities of the business. The senior management team at Ibrahim Fibres is distinguished by its long-standing tenure and proven track record, reflecting a profound commitment to the company’s success and sustained growth. Their collective expertise and leadership have played a critical role in the company’s industry leadership and strategic direction.

Senior management conducts meetings on an ad-hoc basis, strategically convening to deliberate on key matters and drive informed decision-making processes. 

The company has implemented robust and seamlessly integrated systems, adopting Oracle as its enterprise resource planning (ERP) solution. This strategic integration enhances operational efficiency, ensures data accuracy, and facilitates real-time decision-making. By leveraging Oracle’s advanced capabilities, the company generates comprehensive, insightful, and data-driven MIS reports, empowering management with valuable analytics for informed strategic planning and performance optimization.

Ibrahim Fibres maintains a dedicated internal audit function to ensure objective oversight and accountability. The Company also boasts a highly skilled quality control department, further supported by its ISO 9002 certification, demonstrating its commitment to maintaining the highest standards of quality. 

As of 2023, global polyester fiber production reached approximately 71.1 million metric tons, representing 57% of total global fiber output. This reflects a steady increase from ~63 million metric tons in 2022, when polyester accounted for 54% of total fiber production, reinforcing its position as the dominant fiber in the global textile industry. Global demand for Polyester Staple Fiber (PSF) is expected to remain favorable, with market projections estimating the PSF sector's size to reach USD 3,024.3 million by 2026. The primary raw materials for PSF, namely Pure Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG), are derived from crude oil, leading to price fluctuations that contribute to the inherent price volatility of PSF. Consequently, profit margins are heavily influenced by international price trends and exchange rate fluctuations. Notably, over 80% of global PSF production is concentrated in China, India, and Southeast Asia, regions that are also the primary exporters of the product. In CY23, polyester fiber production contracted by approximately 5.0%, driven by subdued demand and a broader economic deceleration. In contrast, imports of polyester fiber experienced a notable year-on-year (YoY) increase of around 10%. Local sales in CY24 totaled 343,127 tons, reflecting a decline of approximately 10.8% compared to 384,673 tons in CY23. This decrease is attributed to the ongoing challenges in domestic production amid the prevailing market conditions.

Pakistan’s Polyester Staple Fiber (PSF) industry is primarily dominated by three key players: Ibrahim Fibres Limited (IFL), Lucky Core Industries Limited, and Rupali Polyester. Among these, Ibrahim Fibres holds the largest market share at 73%, solidifying its position as the industry leader. Lucky Core Industries Limited follows with a 24% market share, while Rupali Polyester accounts for 3%. IFL’s market dominance is driven by its large-scale production capacity, advanced manufacturing technology, and vertically integrated operations, allowing it to achieve cost efficiencies and supply chain stability. The company’s extensive customer base, strong distribution network, and focus on quality standards further reinforce its competitive edge. In contrast, competitors operate on a smaller scale, with relatively limited market penetration. With polyester continuing to be the most widely used synthetic fiber, IFL remains well-positioned to capitalize on future growth opportunities, benefiting from its strong industry presence, financial resilience, and strategic expansion plans.

Ibrahim Fibres Limited (IFL) maintains a stable revenue profile, with the Polyester Staple Fiber (PSF) segment contributing 64% of total sales in CY24, while the spinning segment accounts for 36%. For 9MCY24, net sales stood at PKR 91.04 billion, reflecting a 1.4% growth over CY23 (PKR 119.76 billion). During 9MCY24, Polyester sales reached 156,355 tons (PKR 57.17 billion), while Textile sales totaled 43,650 tons (PKR 33.85 billion). IFL’s diversified revenue mix, operational efficiency, and strategic pricing approach support its resilience and stable performance amid evolving industry conditions.

During 9MCY24, the Company's gross margins exhibited a slight improvement, reaching approximately 7.7% (CY23: ~7.5%). Meanwhile, operating margins remained stable at around 5% in both 9MCY24 and CY23. Notably, the net profit margin strengthened to ~1.9% in 9MCY24 (CY23: ~0.3%), primarily driven by exchange rate stability and reduction in borrowing cost.

Ibrahim Fibres Limited remains a financially robust and strategically agile entity, well-equipped to sustain long-term growth. While expansion plans are currently on hold pending industry stabilization, the Company’s strong forecasting and budgeting framework provides a solid foundation for navigating economic uncertainties. Additionally, IFL benefits from a well-diversified product portfolio, encompassing Polyester Staple Fiber (PSF), spinning, and power generation segments, which collectively enhance revenue stability and mitigate sector-specific risks. By maintaining a data-driven and risk-mitigated approach, IFL is well-positioned to uphold its market leadership and long-term business viability while capitalizing on evolving industry dynamics.

The Company’s working capital requirements are primarily driven by inventory procurement of key raw materials, including Pure Terephthalic Acid (PTA), Mono Ethylene Glycol (MEG), cotton, and viscose, which are financed through a combination of internal cash generation and short-term borrowings. The Company maintains a historically efficient net working capital cycle with minimal receivables exposure. During 9MCY24, the net working capital cycle improved, with working capital days decreasing to 76 days (CY23: 82 days). This improvement is primarily attributable to optimized inventory management, efficient procurement strategies, and stable supply chain dynamics, allowing the Company to maintain leaner inventory levels without disrupting production. The continued focus on working capital efficiency enhances liquidity, reduces reliance on short-term financing, and strengthens overall financial resilience.

During 9MCY24, the Company’s Free Cash Flow from Operations (FCFO) stood at PKR 6,220 million (CY23: PKR 7,589 million), reflecting an increase attributed to changes in working capital and operating cash flows. The interest coverage ratio also improved, reaching 5.7x (CY23: 5.1x), demonstrating an enhanced capacity to cover interest expenses with operating income. The core coverage ratio remained stable at 3.1x (CY23: 3.1x), indicating consistent financial performance in relation to its core obligations and operational efficiency.

IFL’s capital structure is characterized by a low leverage profile, with short-term debt accounting for 58.7% of the total debt book in 9MCY24. During CY23, the Company maintained a leverage ratio of 21.4%, with short-term borrowings comprising over 65% of the total debt. However, in 9MCY24, the proportion of short-term debt decreased to 58.7%, and the leverage ratio improved to 16.4%. This reduction in short-term borrowings reflects the Company’s strategic focus on debt management and improving its debt maturity profile, which enhances financial stability and reduces refinancing risk.