Hifsa Raja

Sales of Faisal Spinning Mills Limited (FASM) climbed 79% to Rs22.32 billion in the first nine months of financial year 2021-22 (9MFY22) compared with Rs12.46 billion in the corresponding period of FY21.

Similarly, its gross profit registered a growth of 157% during 9MFY22 to reach Rs4.48 billion from Rs1.74 billion in the corresponding period of FY21.

The operating profit increased by 191% to Rs2.95 billion in 9MFY22 from Rs1.01 billion in the corresponding period of FY21.

The net income increased 182% to Rs3.16 billion in 9MFY22 compared with Rs1.12 billion over the corresponding period of FY21.

The revenues reflected an increase in demand for the company's products and services owing to favourable market conditions, reports WealthPK.

Annual Results 2020-21

As of June 30, 2021, associated companies, undertakings and related parties owned 50% shares of the company. NIT owned 0.01% shares, the CEO, directors, their spouses and minor children 39.19% shares, banks, development financial institutions, non-banking finance institutions, insurance companies, modarabas and mutual funds 2.27% shares, joint stock companies 0.01% shares and individuals 8.52% shares of the company, respectively.

Financial Performance
During the fiscal year 2020-21, the company generated net sales of Rs17.06 billion over Rs14.89 billion in 2019-20, registering an increase of 15%. The gross profit for FY21 was Rs2.4 billion, up 76% from Rs1.4 billion in FY20. The profit-before-tax for FY21 was Rs2.54 billion, up 268% from Rs690 million in FY20. Net income for FY21 was Rs2.35 billion compared to Rs523 million in FY20, posting an increase of 350%.

The company had the earnings per share (EPS) of Rs16.92 in 2016, which jumped to Rs91.85 in 2019 before dropping to Rs52.39 in 2020. However, the EPS skyrocketed to Rs235.93 in 2021.

Faisal Spinning Mills Limited was incorporated in January 1985 as a public limited company in Pakistan. The company is principally engaged in manufacturing and sales of yarn, greige and dyed fabric and home textile products.

Credit: Independent News Pakistan-WealthPak