Fakiha Tariq

Pak Leather Crafts Limited (PAKL) posted a massive 217% increase in its gross profit, which grew to Rs12 million in the first half (July-December) of the ongoing fiscal year 2022-23 compared to the gross profit of Rs3.9 million over the corresponding period of the last fiscal, WealthPK reports.

During the first half of FY23, PAKL sales went up to Rs67 million, registering an increase of 22% over the sales of Rs55 million posted in 1HFY22. Likewise, the company also posted a net profit in 1HFY23 compared to a net loss in 1HFY22. The leather and tanneries firm posted a net profit of Rs599,765 as compared to a net loss of Rs848,940 in 1HFY22.

The firm posted gross and net profit margins of 18.44% and 0.88%, respectively, compared to 7.10% and minus 1.52% in 1HFY22. The company’s earnings per share stood at Rs0.18 per share in 1HFY23 compared to a loss per share of Rs0.25 in 1HFY22.

Pak Leather Crafts Limited is listed on the Pakistan Stock Exchange under the symbol of PAKL in the leather and tanneries sector. With a market cap of Rs55.9 million, it is the smallest among its six peer companies in the sector. Established in 1971, the firm is a top manufacturer of export quality leather products in Pakistan.

PAKL – Quarterly Review – 1HFY23

PAKL enjoyed considerably high revenues and profits in the second quarter (Oct-Dec) as compared to the first quarter (July-Sept) of FY23. In the first quarter, PAKL posted sales of Rs22 million. The company reported a gross profit of Rs402,000 and a net loss of Rs4.7 million. Thus, the gross profit and net loss ratios came out to be 1.76% and 20.93% in 1QFY23. The leather firm posted a loss per share of Rs1.41 in the first quarter of FY23.

The second quarter was quite encouraging as PAKL posted a gross profit of Rs12 million and a net profit of Rs5.3 million on its quarterly sales of Rs45 million. Thus, the company reported gross and net profit ratios of 26.88% and 11.92% in 2QFY23. In this quarter, PAKL posted earnings per share of Rs1.58.

Credit: Independent News Pakistan-WealthPk