Sales of the firm, owned by apparel exporter Brandix Textile Holdings, rose 31 percent to 1.7 billion rupees during the period, a stock exchange filing said.
Earnings per share of Kuruwita Texile Mills were 53 cents in the December 2011 quarter against a loss of 4.34 rupees the year before.
EPS for the nine months ending December 2011 fell slightly to 11.05 rupees from the previous year with the nine-month net loss falling to 276 million rupees from a loss of 282 million rupees.
Sales in the nine-month period went up 18 percent to 4.6 billion rupees from the year before.
Aslam Omar, chairman of Kuruwita Textile Mills, said the company turned around during the December 2011 quarter.
Net profit for the quarter would be 91 million before accounting for a Voluntary Retirement Scheme which cost 70 million rupees in the period.
"This was the first time after seven consecutive quarters that the company has recorded a net profit and is a direct result of the ongoing waste management and restructuring process adopted by the management," Omar said.
"The continuous focus on quality and on time delivery enabled the company to win back confidence of its customers, enabling growth in sales volumes."The reduction in cotton prices in the global market gradually reduced the selling price compared to previous quarter, but the average selling price still stood higher compared to the third quarter of the previous financial year," Omar said.
"With most of the high priced raw material stocks now been cleared, company recorded a gross profit of 179 million rupees, reflecting a gross margin of 10 percent for the third quarter of FY2011/12.
"The higher production volumes have also provided better efficiencies and benefits through economies of scale," Omar said.
"The third quarter gross profit wiped out the cumulative gross loss for the nine-month period ended December 2011."
The selling and administration expenses were lower this year.
"The management is confident in improving the profitability of the company, whilst continuing the positive trend to the last quarter of this financial year," Omar said.