Hifsa Raja

Balochistan Glass Limited (BGL) sales climbed 14% to Rs1 billion in the first nine months of the previous financial year 2021-22 (9MFY22) compared with Rs953 million in the corresponding period of the FY21.

The company’s gross profit, however, declined by 111% to Rs15.78 million, dropping steeply from Rs146 million in 9MFY21.

The operating profit nosedived to Rs15 million in 9MFY22 from Rs135 million in 9MFY21, showing a decrease of 88%.

Similarly, the BGL registered a loss-before-tax of Rs53 million in 9MFY22 compared to a profit-before-tax of Rs82 million in 9MFY21, showing a decline of 165%.

The net income and the earnings per share (EPS), therefore, declined by 175%, reports WealthPK.

Shareholding

As of June 30, 2021, directors and their spouse(s) and minor children owned 67.26% of total shares, associated companies, undertakings & related parties 9.96%, insurance companies 0.06%, Modarabas and mutual funds 1.24%, general public (local) 11.97% and (foreign) 0.15% and “others” owned 9.32% of shares, respectively.

Financial Performance

During the fiscal year 2020-21, the company registered a decrease of 16% in its sales, which pushed down to Rs1.25 billion from Rs1.49 billion in 2019-20. 

However, the company’s gross profit in FY21 leapt to Rs117 million, 364% up from a loss of Rs44.5 million in the same period of FY20.

Operating profit jumped to Rs121 million at a growth rate 137% in FY21 over a loss of Rs333 million in FY20.

Net income for the year under review increased by 105% to Rs25.5 million from a loss of Rs464 million in FY20.

The BGL’s loss remained high in 2017 compared to 2018 as the gross profit/loss ratio and profit/loss-before tax ratio was negative. In 2021, the gross profit ratio and profit-before-tax ratio showed a positive trend.

Balochistan Glass Limited was incorporated in Pakistan as a public limited company in 1980 under the now repealed Companies Act, 1913 (replaced with the Companies Act, 2017).

The company is engaged in manufacturing and sale of glass containers, glass tableware and plastic shells.

Credit : Independent News Pakistan-WealthPk