Qudsia Bano

Security Papers Limited's financial performance slowed a bit in the first six months of the ongoing fiscal year 2022-23 compared to the same period of the previous year, reports WealthPK. The company's revenue edged lower by 3% to Rs2.5 billion from Rs2.6 billion in the same period last year, indicating a slowdown in the company's sales growth. The gross profit also declined significantly by 41% to Rs536 million from Rs906 million over the same period last year, indicating that the company had difficulty managing its cost of sales.

Similarly, the profit-before-tax decreased 27% to Rs563 million from Rs773 million over the same period last year, indicating the company's operational efficiency declined during the period. The net profit also declined 40% to Rs336 million from Rs564 million in the same period last year. This decline suggests the firm may have faced increasing competition or rising costs, affecting its bottom line. The company may need to focus on improving its operational efficiency, reducing costs, and enhancing its product offerings to regain its growth momentum and profitability.

Performance in 2021-22

Security Papers Limited's summary for the fiscal year 2021-22 shows a mixed performance, with a slight increase in revenue but a decline in profitability compared to the previous year. The total revenue for the year increased by 3% to Rs5.14 billion from Rs5 billion in the previous year, indicating a modest growth in the company's sales. However, the gross profit declined by 12% to Rs1.6 billion from Rs1.8 billion in the previous year.

Similarly, the profit-before-tax decreased by 30% to Rs1.3 billion from Rs1.9 billion in the previous year, indicating that the company's profitability was impacted by rising costs, declining sales, or other factors. The net profit also decreased by 35% to Rs949 million from Rs1.4 billion in the previous year. The decline suggests the company needs to focus on improving its cost management and operational efficiency to maintain its profitability and growth. The earnings per share (EPS) also declined by 35% to Rs16.02 from Rs24.61 in the previous year.

About the company

Security Papers is as a public company in Pakistan that specializes in the manufacturing and sale of specialised paper for banknotes and other security documents.

Credit : Independent News Pakistan-WealthPk