Fakiha Tariq

Mid-cap textile spinning mills in Pakistan collectively earned gross profit of Rs13 billion and net profit of Rs5.3 billion on their sales of Rs105 billion in the first half (July-December) of the ongoing fiscal year 2022-23, reports WealthPK. The textile spinning sector comprises 26 firms including 10 mid-caps and 16 small-caps. Eight out of the 10 mid-cap textile mills listed on the Pakistan Stock Exchange in the textile spinning sector declared net profit by the end of 1HFY23. The remaining two mid-caps reported net loss during the said period though they reported profits at the gross level.

In 1HFY23, textile spinning mid-caps collectively posted gross and net profit ratios of 13.17% and 5.02%, respectively Gadoon Textile Mills Limited (GADT) posted the highest revenues of Rs26 billion followed by Indus Dyeing and Manufacturing Company Limited (IDYM) with sales of Rs21 billion. JK Spinning Mills Limited (JKSM), Tata Textile Mills Limited (TATM) and Premium Textile Mills Limited (PRET) generated the third, fourth and fifth highest revenues of Rs17 billion, Rs14 billion and Rs10 billion, respectively.

Nadeem Textile Mills Limited (NATM), Reliance Cotton Spinning Mills Limited (RCML) and Sunrays Textile Mills Limited (SUTM) ranked sixth, seventh and eighth by posting sales of Rs5 billion, Rs4.7 billion and Rs4.5 billion, respectively. Allahwasaya Textile and Finishing Mills Limited (AWTX) and Din Textile Mills Limited (DINT) posted the lowest sales of Rs1.7 billion and Rs14 million in 1HFY23.

In terms of profits, GADT posted the highest gross profit of Rs3.3 billion and net profit of Rs1.8 billion followed by JKSM with gross and net profits of Rs2.6 billion and Rs1 billion, respectively, in the first half of FY23. AWTX and DINT posted the lowest gross profits of Rs73 million and Rs1.7 million, respectively. DINT also posted the lowest net profit of Rs24,932 only in 1HFY23. AWTX and NATM bore net losses of Rs104 million and Rs128 million in 1HFY23.

RCML topped the mid-cap spinning firms in terms of production efficiency and posted the highest gross profit (GP) and net profit (NP) ratios of 21.92% and 14.77%, respectively. PRET ranked second, securing GP and NP ratios of 20.92% and 8.07%, respectively. JKSM declared the third highest GP ratio of 15.56%, whereas GADT reported the third highest NP ratio of 6.97% in the first half of FY23.

AWTX reported the lowest GP ratio of 4.16% and DINT posted the lowest NP ratio of 0.18% among the textile spinning mid-cap firms. AWTX and NATM posted net loss ratios in 1HFY23. In terms of earnings per share (EPS), PRET topped the chart with semi-annual EPS of Rs137.3 followed by GADT with EPS of Rs64.92 and RCML with EPS of Rs62.65.

In 1HFY23, DINT posted the lowest EPS value of Rs0.48, whereas AWTX and NATM posted loss per share of Rs130.53 and Rs7.16, respectively.

Credit : Independent News Pakistan-WealthPk