Qudsia Bano

Gatron Industries Limited, a leading manufacturer and exporter of high-quality polyester staple fiber, has released its six-month summary for the period ended December 31, 2022, reporting revenue of Rs7.13 billion and representing a yearly growth of 17%, reports WealthPK. However, the company’s gross profit declined significantly by 94% to 55.7 million mainly due to higher raw material prices and an increase in production costs. The company reported a profit-before-tax of Rs297 million, showing a decrease of 68% compared to the same period the previous year. Similarly, the net profit decreased by 60% to Rs261 million. Despite a dent in profitability, the company continues to focus on optimising its production process to enhance efficiency and reduce costs.

Performance in 2021-22

The company reported strong revenue growth of 45% in fiscal year 2021-22 as its revenue jumped to 23.9 billion from R16.5 billion in the previous year. This growth was driven by increased demand for the company's products, as well as expansion into new markets. Gatron Industries Limited also reported a significant increase in gross profit, which grew by 70% to Rs3.17 billion in 2021-22 from Rs1.86 billion in the previous year. This growth was primarily due to improved production efficiency and cost management efforts.

The company's profit-before-tax also showed a remarkable increase of 97% year-on-year, reaching Rs2.5 billion in 2021-22, up from Rs1.3 billion in the previous year. This growth was driven by higher revenue and gross profit, as well as lower finance costs. Furthermore, Gatron Industries Limited reported strong net profit growth of 71% YoY, reaching Rs1.8 billion in 2021-22, up from Rs1.06 billion in the previous year. The increase was due to the growth in revenue and gross profit. The earnings per share (EPS) for the company also showed an impressive growth of 71% YoY, reaching Rs47.63 in 2021-22 from Rs27.78 in the previous year.

About the company

Gatron Industries was incorporated in Pakistan in 1980 as a public limited company. Its principal business is manufacturing of polyester filament yarn through its self-produced polyester polymer/chips. The company also produces PET preforms.

Credit: Independent News Pakistan-WealthPk