Jawad Ahmed

The net sales of the automotive wheel rims manufacturer Balochistan Wheels Limited increased by 76.3% to Rs2.778 billion in the last financial year 2021-22 compared to Rs1.575 billion in fiscal 2020-21, reports WealthPK.

The company, which is listed on the Pakistan Stock Exchange as a limited liability, reported a gross profit of Rs612 million in FY22 as against Rs243 million in FY21, showing a growth of 151.8%. The net profitability of the company also showed an upward trajectory as rising sales and productivity caused a 108% increase in the net profit, dragging it up to Rs208 million in FY22 from Rs100 million in FY21. The earnings per share (EPS) thus increased from Rs7.55 to Rs15.62 during the two comparable periods.

Company’s performance over the years

During the year 2019, the net sales of the company decreased 15.72% to Rs1.587 billion from Rs1.883 billion in the preceding year. The gross profit also declined by 8.9% to Rs246 million from Rs270 million in the fiscal year 2018. The net profitability fell to Rs72 million from Rs88 million in 2018, dragging the EPS down to Rs5.36 from Rs6.58.

In 2020, the company's sales plunged further by 43% to Rs913 million from Rs1.587 billion in 2019. The main reasons for this downturn were the Covid-19 pandemic and the rupee's fall against the US dollar, which raised the price of imports. An increase in cost of sales led to a 52% drop in gross profit, pulling it down to Rs117 million from Rs246 million the previous year.

Similarly, the company’s after-tax profit dipped by 74% to Rs19 million from Rs72 million the previous year. Its earnings per share thus decreased to Rs1.42 from Rs5.36 the previous year.

In 2021, the company saw a turnaround in the sales growth across all segments – cars, trucks, buses, and tractor wheels –witnessing a 73% increase, and pushing the turnover to Rs1.57 billion from Rs913 million in 2019.

The gross profit increased by 107% to Rs243 million from Rs117 million the previous year. Similarly, the company earned profit-after-tax of Rs101 million during the year compared to Rs19 million the previous year, showing a stunning growth of 432%. Due to high growth in the net profit, the EPS ballooned to Rs7.55 from Rs1.42 the previous year.

Credit : Independent News Pakistan-WealthPk