Jawad Ahmed

The revenues of Feroze1888 Mills Limited – a producer and exporter of towels – stood at Rs49.01 billion in the Financial Year 2021-22, higher by 15.13% than Rs42.57 billion in the Fiscal Year 2020-21, reports WealthPK.

The company's top line increased significantly in FY22, but the growing raw material prices and rising sales expenses reduce profitability.

During FY22, the company reported a profit-before-tax of Rs4.12 billion down from Rs4.78 billion the year before. The net profit for the fiscal year ending June 30, 2022, after statutory tax adjustments, was Rs3.408 billion down from Rs4.311 billion of the previous year by 20.95%. The earnings per share (EPS) decreased from Rs11.30 the year earlier to Rs8.76 as a result of the drop in profit.

Company’s performance over the years

During the financial year ending June 30, 2019, the net sales of the company increased to Rs29.348 billion compared to Rs21.849 billion in the preceding year, showing a growth of 34.3%. The gross profit grew 58.16% to Rs7.748 billion from Rs4.899 billion in the Fiscal Year 2018. The net profitability surged to Rs5.99 billion from Rs2.75 billion in FY18, which dragged the EPS up to Rs15.90 from Rs7.30.

In 2020, the sales climbed 6.33% to Rs31.206 billion from Rs29.348 billion in 2019. However, compared to a year ago, the company's gross profit decreased 3.24% from Rs7.748 billion to Rs7.497 billion in 2020.

In contrast to Rs5.99 billion made in 2019, the company's net profit in 2020 was Rs2.937 billion. Thus, the EPS of Rs15.90 declined to Rs7.80.

In 2021, the company experienced a spectacular increase in its turnover, which rose by 36.43% to Rs42.575 billion from Rs31.206 billion the year before. The gross margins were Rs10.066 billion, up from Rs7.497 billion the year before.

The profit after tax increased 46.78% from Rs2.937 billion to Rs4.31 billion. For the fiscal year ending June 30, 2021, the EPS increased from Rs7.80 to as high as Rs11.44.

Credit : Independent News Pakistan-WealthPk