Kohinoor Textile Mills Limited (KTML) has reported a significant boost in its profits, posting a profit after tax (PAT) of Rs9.19 billion for the fiscal year ending on June 30, 2023. This marks a remarkable increase of over 72% compared to the Rs5.33 billion recorded in the corresponding period of the previous year. The impressive financial results were unveiled at the Pakistan Stock Exchange (PSX) on Monday.
This surge in profits has translated into an impressive Earnings Per Share (EPS) of Rs21.55 for FY23, a substantial improvement from the Rs12.93 EPS recorded in the same period last year.
It is noteworthy that this profit growth stands in stark contrast to the ongoing challenges faced by the textile sector in the country.
Earlier this month, a delegation from the All Pakistan Textile Mills Association held a crucial meeting with Dr. Gohar Ejaz, the Caretaker Federal Minister for Commerce and Industries and Production.
During the meeting, the delegation engaged in an extensive discussion with the minister on the pressing issues affecting the textile industry. One of the primary concerns raised by the delegation was the need for a competitive regional energy tariff to ensure the sustainable operation of textile mills and to effectively compete in the global market.
On a consolidated basis, KTML’s revenue also witnessed a substantial growth of over 18%, reaching Rs104.12 billion in FY23 from Rs87.98 billion in FY22.
However, despite the revenue growth, Kohinoor’s gross profit margin only rose by 7% to Rs25.8 billion compared to Rs24.13 billion, primarily due to high cost of sales.
Notably, the company managed to significantly reduce its other expenses, which decreased from Rs6.26 billion in FY22 to Rs1.79 billion in FY23.
On the flip side, the company’s finance costs experienced a substantial increase of over 63% year-on-year, rising from Rs2.63 billion in FY22 to Rs4.3 billion in FY23. This surge in finance costs is attributed to the increase in policy rates during the period.
In total, this translates to a profit before tax (PBT) of Rs15.56 billion in FY23, reflecting a notable increase of over 50%.
Beyond the financial results, KTML’s Board has announced plans to invest up to Rs2 billion in its subsidiaries, Maple Leaf Cement Factory Limited (MLCF) and Maple Leaf Capital Limited (MLCL), to meet their working capital requirements.
Kohinoor Textile Mills Limited, established under the Companies Act, 1913, is a public limited company engaged in the manufacturing of yarn and cloth, as well as the processing and stitching of cloth.”
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