Hifsa Raja

Tata Textile Mills Limited’s revenue decreased 22% to Rs14 billion in the first half (July-December) of the ongoing fiscal year 2022-23 from Rs17.9 billion in the corresponding period of the previous year.The company’s gross profit plunged 58% to Rs1.7 billion in 1HFY23 from Rs4.2 billion in the corresponding period of FY22.

The profit-before-taxation in 1HFY23 also nosedived to Rs287 million from a profit of Rs2.8 billion 1HFY22, registering a negative growth of 90% year-on-year. Similarly, the profit-after-taxation dove 95% to Rs116 million 1HFY23 from Rs2.4 billion 1HFY22, reports WealthPK.

The company’s profitability was significantly higher in the first and second quarters of FY22 compared to the same period of FY23. However, it's important to note that financial ratios are just one aspect of analysing a company's profitability and should be considered in conjunction with other factors such as market trends, industry competition, and company strategy.

Earnings growth analysis

The company saw a negative growth in its earnings per share from 2019 to 2021. However, in 2022, the earnings per share and EPS growth remained positive.

The company paid a dividend of Rs12.5 to its shareholders in 2022, showing a marked improvement over the prior year when there was no payout. As such, the dividend yield rose from 0% in 2021 to 17.59% in 2022. For investors, the rising dividend and dividend yields are fairly positive signs.                                                                          

Industry comparison

Tata Textile Mills Limited’s competitors include Faisal Spinning Mills Limited, Din Textile Mills Limited, JK Spinning Mills Limited, and Towellers Limited. It's crucial to keep in mind that market capitalisation can be impacted by a variety of variables, such as firm’s performance, market trends, and investor mood, which can lead to changes in these rankings over time.

Company profile

Tata Textile Mills Limited is engaged in manufacturing and sale of yarn. It also exports its products to various countries such as China, Japan, South Korea, Portugal, Italy, Germany, Belgium and others.

Credit: Independent News Pakistan-WealthPk