Qudsia Bano

Rupali Polyester Limited’s revenue dropped year-on-year in the first six months of the ongoing financial year 2022-23 (6MFY23), which also translated into yearly gross and net profit losses. The company’s revenue decreased by 7% to Rs4.9 billion in 6MFY23 from Rs5.3 billion over the corresponding period of the previous fiscal.

Similarly, the company sustained a 137% decrease in gross profit, which plunged to Rs252.5 million in 6MFY23 from a gross profit of Rs691 million recorded in 6MFY22. The company also bore a net loss of Rs411 million in the first six months of the current fiscal year, which was down 106% compared to the profit of Rs732 million in the corresponding period of the previous year, reports WealthPK.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales leapt to Rs11.23 billion from Rs7.6 billion in FY21, posting a massive increase of 49% year-on-year. Due to a successful marketing effort and price fluctuation, the firm exceeded the benchmark of Rs10 billion for the first time in its existence.

The gross profit for FY22 stood at Rs1.2 billion, 41% up from Rs844 million in FY21. Due primarily to lower bank borrowings this year compared to the last year, financing costs dramatically fell from Rs139.09 million to Rs72.21 million.

In FY21, the firm’s profit-before-tax was Rs546.04 million, which increased to Rs865.73 million in FY22. Compared to the revised figure of Rs292.07 million for FY21, the profit-after-tax jumped to Rs861.09 million in FY22, posting a massive 195% increase on a year-on-year basis, reports WealthPK.

The company's earnings per share jumped from Rs8.57 in FY21 to Rs25.27 in FY22.

About the company

Rupali Polyester Limited is engaged in manufacture and sale of polyester products, catering to producers of various cloth and fabric variants within the textile industry. The firm has a unit in Sheikhupura with a capacity of producing 30 metric tonnes of polyester filament yarn per day and 65 metric tonnes of polyester staple fiber per day. The company also imports basic raw materials and exports a variety of products.

Credit: Independent News Pakistan-WealthPk