By Jawad Ahmed

Ahmad Hassan Textile Mills Limited’s revenues increased 46% to Rs5.54 billion in the financial year that ended June 30, 2022 compared with Rs3.79 billion in the year 2021. The sales revenue during the fiscal year under review increased both quantitatively and monetarily, reports WealthPK quoting the company’s financial stats.

A public-limited company incorporated in Pakistan on December 03, 1989, Ahmad Hassan Textile Mills is principally engaged in the manufacturing and sale of yarn and fabric.

The company also made a hefty gross profit of Rs338 million in FY22, up 17% from Rs289 million achieved in FY21.

The company’s net profitability increased significantly as a result of the considerable top-line growth from Rs168 million in FY21 to Rs201 million in FY22.

The earnings per share (EPS), which was Rs19.81 the year before, increased significantly to Rs23.76 in FY22.

Company’s performance over the years

In 2019, the company’s sales revenue increased to Rs7.27 billion from Rs5.17 billion in 2018.

The company’s gross profit increased to Rs460 million from Rs308 million the previous year.

The profit-after-tax for the year increased by 310% to Rs41 million from Rs10 million in the previous year. As a result, the EPS rose from Rs0.7 in 2018 to Rs2.84 in 2019.

In 2020, the company’s sales declined 48.4% to Rs3.75 billion from Rs7.27 billion in 2019. This was mostly caused by the Covid-19-induced restrictions, which closed markets and disrupted the supply chain.

But the company reported a 195% increase in net profit during the year, which stood at Rs121 million, up from Rs41 million the previous year.

As a result, the EPS leapt to Rs13.62 in 2020 from Rs2.84 the previous year.

In 2021, the company experienced a marginal increase in its turnover, which rose by 1.6% to Rs3.81 billion from Rs3.75 billion the year before.

The profit-after-tax improved from Rs121 million the previous year to Rs168 million during the year under review. Due to gains in profit, the EPS edged up to Rs19.81 from Rs13.68 the year before.

Current results and future outlook

In fiscal year 2021-22, the company’s revenue increase was due to growing demand on the back of economic upswing after the Covid-19-related restrictions eased off.

The recent severe floods in Pakistan significantly worsened the prospects for the economy. However, if political stability is achieved and the ongoing stabilisation measures continue, they would have a significant impact on the economic outlook.

Additionally, the price of fabric has not increased in tandem with the increase in input costs because of a fall in demand for the product in both the local and global markets.

To achieve the targeted results for the upcoming fiscal year, the management of Ahmad Hassan Textile Mills is focusing on cutting costs by increasing capacity and enhancing efficiencies.

Credit : Independent News Pakistan-WealthPk