Hifsa Raja

Allawasaya Textile & Finishing Mills Limited’s revenue was Rs930 million in the first three months (July-Sept) of FY2022, which decreased by 19% compared with Rs1.15 billion in the corresponding period of FY2021. The gross profit showed a year-on-year decrease of 66% to Rs42 million in 3MFY22 from Rs124 million in 3MFY21.

Similarly, the loss before taxation registered an increase during the three-month period of FY22, reaching Rs34 million loss as against Rs78 million profit in the corresponding period of FY21. The loss after taxation was Rs46 million in the three months of FY2022 compared with Rs55 million over the corresponding period of FY2021, reports WealthPK.

The company's poor performance in this quarter is attributed to a lower demand for yarn and textiles in the domestic and global markets. The flood situation in the country has also affected the performance, as 50% of the cultivated cotton crop has been destroyed.

Financial Performance

During FY21, the company’s revenue was Rs3.54 billion as against Rs2.65 billion in FY20, registering an increase of 33%. The gross profit was Rs363 million in FY21 as against Rs176 million in FY20, while the profit before taxation was Rs216 million as against Rs22 million in FY20. The profit after taxation was Rs145 million as against Rs14 million in FY20.

The earnings per share (EPS) was minus Rs19.9 in 2019 and increased to Rs18.53 in 2020. It was Rs81.78 in 2021 and Rs179.86 in 2022.

Shareholdings:

Individuals held 99.97% of the company's shares as of June 30, 2021. The company also received minor investments from joint stock companies and a few from investment firms.

Profit or Loss:

Gross profit and profit before and after tax for the last six years are used to illustrate the company's profitability. At first, the profitability was poor, but it kept getting better with each passing fiscal year. The profitability, however, was somewhat modest in 2019. After then, it continued to grow in a healthy direction. Because of the company's consistent growth in earnings, it is a strong alternative for investors.

Allawasaya Textile & Finishing Mills Limited was incorporated in Pakistan on December 3, 1958 as a private limited company. It was converted into a public limited company in 1965 under the Companies Act 1913 (now Companies Act, 2017). It is principally engaged in the manufacture and sale of yarn.

Credit : Independent News Pakistan-WealthPk