Qudsia Bano

Redco Textile Limited’s revenue from sales increased 27% to Rs177.8 million in the first quarter of the ongoing financial year 2022-23 (1QFY23) compared to Rs139.5 million over the corresponding period of the previous fiscal. However, the gross profit of the company decreased 95% to Rs0.8 million in 1QFY23 from Rs17 million recorded in 1QFY22. The company also posted a net loss of Rs9.6 million in 1QFY23 compared to a profit of Rs13.9 million over the corresponding period of FY22, showing a massive negative growth of 169% year-on-year, reports WealthPK.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales went up to Rs728.6 million from Rs495.5 million in FY21, posting an increase of 47% year-on-year.   The gross profit for FY22 stood at Rs68.8 million, up 79% from Rs36.8 million in FY21. However, the profit-after-tax for the year went down by 68% to Rs17.5 million from Rs55.4 million in FY21.

Pattern of Shareholding

As of June 30, 2022, directors, the chief executive officer, their spouses and minor children owned 60.5212% of the shares of the company. NIT and ICP held 0.8123%, banks, development financial institutions, and non-banking financial institutions owned 2.0202%, insurance companies 3.9864%, general public (local) held 30.5393%, while foreigners held 0.0061%. Joint stock companies owned 0.8054% of the shares and investment companies held 1.3091%.

Earnings Per Share

The earnings per share of the company was high in 2021 at Rs1.13. However, EPS decreased to Rs0.36 in 2022. 

About the company

Redco Textiles Limited is a public limited company incorporated in Pakistan under the now repealed Companies Ordinance, 1984 (now the Companies Act, 2017). It commenced its operations in October 1991. Redco's principal activities include manufacturing and sale of yarn and greige fabric.

Credit : Independent News Pakistan-WealthPk