Hifsa Raja

Asim Textile Mills Limited generated net sales worth Rs314 million in the first half of the ongoing fiscal year 2022-23 (1HFY23) compared to Rs1.1 billion recorded in the same period of the previous year, registering a staggering decrease of 72% year-on-year, reports WealthPK. 

The company bore a gross loss of Rs1.7 million in 1HFY23 compared to a gross profit of Rs65 million in 1HFY22, posting a massive decrease of 103% year-over-year.The company faced an operating loss of Rs23 million in 1HFY23 compared to Rs43 million operating profit in 1HFY22.

Likewise, the loss-before-tax for 1HFY23 stood at Rs6 million compared to the before-tax profit of Rs52 million in 1HFY22.The company also sustained net loss of Rs10 million in 1HFY23 compared to net profit of Rs39 million in 1HFY22, posting a staggering decline of 127%.

Earnings per share and EPS growth

The company’s earnings per share (EPS) decreased to Rs1.23 in 2020 from Rs3.7 in 2019, but increased to Rs5.02 in 2021 before falling to Rs2.16 in 2022.

Industry comparison

Asim Textile Mills Limited’s competitors include Aruj Industries Limited, Elahi Cotton Mills Limited, Hala Enterprises Limited, and AN Textile Mills Limited.

Ratio analysis

The company's gross profit margin was 6.12% in 2019, which decreased to 3.17% in 2020, but increased to 7.23% in 2021 before falling again to 3.34% in 2022. The company's net profit margin was 3.14% in 2019, which decreased to 1.27% in 2020, but increased to 4.42% in 2021 before dropping again to 1.58% in 2022.

The company's profitability has been somewhat volatile over the past few years, with both gross profit margin and net profit margin fluctuating significantly. However, it is important to look at these numbers in the context of the industry and the company's specific circumstances, as there may be external factors that have contributed to these fluctuations.

The company has been in profit from 2017 to 2021. However, the level of profitability has varied over time. In 2019 and 2021, the company's profit was relatively high, while in 2020 and 2018, the profit was lower.

Company profile

Asim Textile Mills Limited is engaged in manufacturing and selling of yarn. The company manufactures and exports polyester/cotton yarns, printed fabric and home textile products such as bed-in-a-bag, sheet sets, curtains, pillow cases and others. The company’s mill is situated in Jaranwala tehsil of Faisalabad district in Punjab province. The mill’s capacity is approximately 22,320 spindles.

Credit: Independent News Pakistan-WealthPk