Hifsa Raja

Service Industries Textiles Limited’s revenue stood at over Rs1 billion in the first nine months ending March 31, 2022, compared to Rs896 million in the corresponding period of the preceding fiscal, posting an increase of 13% year-over-year.

The gross profit dipped 39% year-on-year to Rs63 million in 9MFY22 from Rs105 million in 9MFY21.

The before-tax profit also slumped 72% to Rs20.42 million during the nine-month period of FY22 from Rs72.44 million in the corresponding period of FY21.

The after-tax profit plunged 73% to Rs15 million in 9MFY22 from Rs55 million in 9MFY21, reports WealthPK.

Financial Performance in 2021

During the fiscal year 2020-21, the company’s net revenue stood at Rs1.23 billion over Rs921 million in 2019-20, registering an increase of 34%. 

The gross profit increased to Rs130 million in FY21 from Rs59 million in FY20 at a growth rate of 120% year-on-year. 

The company earned a before-tax profit of Rs80.73 million in FY21, recovering from a loss of Rs1.83 million in FY20. 

The firm also earned Rs59.54 million in post-tax profit in FY21, coming out of a net loss of Rs25 million in FY20.

The earnings per share stood healthily at 8.34 in 2019, but plunged to minus Rs5.63 in 2020. The EPS rocketed back to Rs9.91 in 2021 before nosediving to Rs0.82 in 2022.

Shareholding pattern

As of June 30, 2021, directors, the chief executive officer, their spouses and minor children owned 63.98% of the company’s shares. NIT and ICP owned 2.04%. Banks, development financial institutions, and non-banking financial institutions had 0.54%, insurance companies 2.18%, mutual funds and modarabas 0.06%, general public (local) 30.77%, joint stock companies 0.38% and ‘others’ 0.05%, respectively.

The company’s gross profit remained relatively healthy over the last four years. The business generated decent before-tax profit in 2019 and 2021. The after-tax profit was healthy in 2019 and 2021.

Service Industries Textiles Limited was incorporated in Pakistan in 1962 as a private limited company under the Companies Act 1913. It was subsequently converted into a public limited company in 1970. The principal activity of the company is manufacturing and sale of yarn made from raw cotton and synthetic fiber.

Credit : Independent News Pakistan-WealthPk