Qudsia Bano

Redco Textile Mills Limited has reported a revenue of PKR425.3 million in the first six months (July-Dec) of FY2022-23, showing a growth of 31% year-on-year, reports WealthPK. However, the gross loss during the six months was PKR28.6 million, representing a significant decline of 156% compared to the profit of PKR51.2 million in the same period last year. The loss before tax was PKR42.8 million, showing a decline of 249% compared to the profit of PKR28.7 million in the same period last year.

The net loss was PKR48.2 million, showing a significant decline of 302% compared to the profit of PKR23.8 million in the same period last year. The significant decline in gross profit and net profit was primarily due to the unprecedented increase in raw material prices, including cotton and polyester yarn, and the impact of the COVID-19 pandemic on the global supply chains.

Performance in 2021-22

The company reported a total revenue of PKR728.6 million, representing a growth of 47% compared to PKR495.5 million in the previous year. The gross profit also showed a significant growth, increasing by 79% to PKR65.8 million in FY 2021-22, compared to PKR36.8 million in the previous year. However, the profit before tax for the year declined by 44% to PKR26.9 million compared to PKR48.4 million in the previous year. The earnings per share (EPS) for the year stood at PKR0.355, showing a decline of 68% compared to PKR1.125 in the previous year, reports WealthPK.

About the company

Redco Textiles Limited is a public limited company that commenced operations in October 1991. It was incorporated under the Repealed Companies Ordinance 1984 (now the Companies Act 2017). The company’s principal activities include the manufacture and sale of yarn and greige fabric.

Credit: Independent News Pakistan-WealthPk