PAKISTAN SYNTHETICS LIMITED
BOARD OF DIRECTORS | MR. KHURSHID AKHTAR | CHAIRMAN - INDEPENDENT |
MR. YAKOOB HAJI KARIM | CHIEF EXECUTIVE | |
MR. NOMAN YAKOOB | EXECUTIVE | |
MR. ABID UMER | NON - EXECUTIVE | |
MR. MUBBASHIR AMIN | NON - EXECUTIVE | |
MR. ALI KAMAL | INDEPENDENT | |
MR. FARAZ YOUNUS BANDUKDA | INDEPENDENT | |
MS. SADAF SHABBIR | INDEPENDENT | |
AUDIT COMMITTEE | MR. ALI KAMAL | CHAIRMAN |
MR. MUBBASHIR AMIN | ||
MR. FARAZ YOUNUS BANDUKDA | ||
HUMAN RESOURCE AND | MR. FARAZ YOUNUS BANDUKDA | CHAIRMAN |
REMUNERATION COMMITTEE | MR. MUBBASHIR AMIN | |
MR. NOMAN YAKOOB | ||
CHIEF FINANCIAL OFFICER | MR. SHAHID YAKOOB | |
COMPANY SECRETARY | MR. MUHAMMAD IMRAN | |
BANKERS | ASKARI BANK LIMITED | |
AL BARAKA BANK PAKISTAN LIMITED | ||
BANK AL HABIB LIMITED | ||
BANK OF PUNJAB LIMITED | ||
BANK OF KHYBER | ||
BANK AL-FALAH LIMITED | ||
BANK ISLAMIC PAKISTAN LIMITED | ||
DUBAI ISLAMIC BANK PAKISTAN LIMITED | ||
FAYSAL BANK LIMITED | ||
HABIB BANK LIMITED | ||
HABIB METROPOLITAN BANK LIMITED | ||
MEEZAN BANK LIMITED | ||
PAK KUWAIT INVESTMENT COMPANY | ||
SONERI BANK LIMITED | ||
AUDITORS | BDO EBRAHIM & CO. | |
CHARTERED ACCOUNTANTS | ||
HEAD OF INTERNAL AUDIT | MR. JAFFAR IQBAL | |
REGISTRAR | F.D REGISTRAR SERVICES (PVT.) LTD. | |
OFFICE # 1705, 17TH FLOOR, SAIMA TRADE | ||
TOWER-A, I.I. CHUNDRIGAR ROAD, | ||
KARACHI. | ||
LEGAL ADVISOR ADVOCATE | TASAWUR ALI HASHMI | |
REGISTERED OFFICE | OFFICE # 1504, 15TH FLOOR, EMERALD | |
TOWER, BLOCK 5, CLIFTON, KARACHI | ||
FACTORY | F-1, 2, 3, 13, 14 & 15 HUB INDUSTRIAL | |
TRADING ESTATE DISTRIC LASBELLA, | ||
BALOCHISTAN. | ||
PLOT # A-5, N.W.I.Z, PORT QASIM | ||
AUTHORITY, KARACHI |
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PAKISTAN SYNTHETICS LIMITED
DIRECTORS' REVIEW
The Board of Directors is pleased to present its review together with unaudited financial statements of the Company for the half year ended December 31, 2024:
OVERVIEW
Country's economy has shown encouraging progress during the first half of the financial year. Inflation, which had been a persistent challenge, continued to decline and currently is now in single digits. The State Bank of Pakistan (SBP) has lowered the policy rate with expectations of further reductions in the future. The Pakistani Rupee remained stable against the U.S. dollar, and fiscal resilience was maintained largely due to sound and cautious economic management, which promoted fiscal discipline.
OPERATING AND FINANCIAL PERFORMANCE
For the six-month period ending December 31, 2024, the Company saw a 21% increase in sales revenue compared to the same period last year, driven by a higher quantity of products sold. Consequently, the Gross Profit rose from Rs. 842.925 million to Rs. 974.631 million. The increase in cost of sales was mainly due to the higher quantity sold, as well as the rise in fuel prices. Distribution expenses, primarily comprising outward freight, grew due to the higher sales volume. Other operating expenses rose mainly because of a provision for expected credit loss (ECL) amounting to Rs. 12.75m recognized during the current period, compared to last year. Despite a decrease in interest rates compared to the previous year, the Company's higher utilization of short-term borrowing facilities resulted in an increase in finance costs, which rose from Rs. 379.989 million in December 2023 to Rs. 390.865 million in December 2024. Additionally, the Company's investment in an associate, which reported a loss for the half-year, led to a share of the loss amounting to Rs. 105.072 million. After accounting for all expenses, the Company reported a net profit after tax of Rs. 168.792 million for the half-year period (compared to Rs. 216.241 million in 2023), translating to earnings per share of Rs. 1.22/share (2023: Rs. 1.56/share).
FUTURE OUTLOOK
Country's macroeconomic indicators are demonstrating signs of recovery. Inflation and interest rates are on a downward trend and the rupee has stabilized. While these macroeconomic indicators that signal cautious optimism, challenges remain. Despite these positive developments, Electricity and Gas prices continue to affect industrial competitiveness. However, the Government's commitment to reducing energy costs and further monetary easing offers a positive outlook for cost structures.
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The Management is proactively managing situation to maintain existing market share in the industry while remain competitive and keeping the profit margins intact.
ACKNOWLEDGEMENT
The Board expresses its gratitude to all the valued shareholders, Federal and Provincial Government functionaries, Banks, financial institutions, suppliers and customers for their unwavering commitment and support to the Company.
The Board also extends its appreciation to the management team, executives, staff members and workers of the company for the valuable contributions, services, loyalty & dedication and recognize that they are most valuable assets of the Company.
For and on behalf of the Board of Directors
_____________________ | ____________________ |
YAKOOB HAJI KARIM | KHURSHEED AKHTAR |
CHIEF EXECUTIVE | DIRECTOR |
Date: February 21, 2025
Karachi
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