CORPORATE BRIEFING SESSION, FY23
November 23, 2023
BRIEF OVERVIEW
- Incorporated in Pakistan on March 03, 1987.
- Principal activity is to manufacture and sell cotton and polyester yarn (Greige Yarn, Fancy / Melange Yarn and Heather Yarn) as well as socks of various varieties (performance socks, speciality socks and lifestyle socks).
- The Group has successfully diversified into manufacturing of auto parts and trading.
- Flagship company of the Group.
- Commenced its operations with 12,230 spindles, which have increased to 91,455 as of today (Up: ~8x in last 30 years).
- Operating in both, local and int'l markets (FY23: Local
Sales: 3.17%; Exports Sales: 96.83% of Gross Sales); - Geared towards acquiring latest technology to provide its customers premium yarn;
- Operating its own power plant;
MANAGEMENT INFORMATION
Board of Directors
Mr. Mohammad Aslam Parekh | Chairman |
Mr. Abdul Kader Adam | Chief Executive |
Mr. Mohammad Yasin Siddik | Executive Director |
Ms. Naila Hasan | Independent Director |
Mr. Mohammad Raziuddin Monem | Independent Director |
Ms. Lubna Asif Balagamwala | Independent Director |
Mr. Tanzeel Abdul Sattar (NIT Nominee) | Director |
Managing Director | |
Mr. Zaid Siddik | |
Chief Financial Officer
Ms. Shenila Parekh
Company Secretary
Mr. Hammad Ullah Khan
Auditors
Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants
CERTIFICATIONS
FINANCIAL SUMMARY
PKR Million | FY'23 | FY'22 | YoY |
Sales | 22,828.70 | 19,976.81 | 14% |
Gross Profit | 3,939.42 | 5,582.09 | -29% |
Operating Profit | 3,113.05 | 4,956.17 | -37% |
Finance Cost | 2,238.21 | 875.80 | 156% |
PBT | 1,394.33 | 4,609.51 | -70% |
PAT | 1,042.64 | 4,310.38 | -76% |
Total Assets | 28,019.23 | 20,942.45 | 34% |
Total Equity | 9,152.67 | 8,308.05 | 10% |
GP Margin (%) | 17% | 28% | -38% |
NP Margin (%) | 5% | 22% | -79% |
EPS (Rs.) | 169.18 | 699.40 | -76% |
DPS (Rs.) | 25 | 100 | -75% |
BUSINESS REVIEW
- Net revenue grew by 14%, YoY, in FY23.
- Export sales grew by 17% in FY23 as compared to local sales which rose by 56% in FY23.
- FY23 utilization level stood at 88.29%.
- Number of shifts worked in FY23 were 1,092.
- The company incurred capital expenditure of PKR 4.075bn in FY23.
WORKING NOTES (RS, MILLIONS)
Sales | FY'23 | FY'22 | YoY | Cost of Sales | FY'23 | FY'22 | YoY | ||
Gross Local Sales | 731 | 470 | 55.60% | Raw Mat. Consumed 15,495 11,072 | 39.94% | ||||
Gross Export Sales | 22,316 | 19,095 | 16.87% | Production Expenses | 3,506 | 2,386 | 46.92% | ||
23,047 | 19,565 | 17.80% | 19,000 13,458 | 41.18% | |||||
Gross Local Sales | 3.17% | 2.40% | Total COGS | 18,889 14,395 | 31.22% | ||||
As a % of Net Sales | |||||||||
Gross Export Sales | 96.83% | 97.60% | |||||||
Raw Mat. Consumed 67.88% 55.43% | |||||||||
Raw Mat. Sales | 69.85 | 628.34 -88.88% | |||||||
Production Expenses 15.36% 11.94% | |||||||||
0.30% | 3.11% | ||||||||
Share in COGS | |||||||||
23,117 | 20,193 | 14.48% | |||||||
Raw Mat. Consumed 82.03% 76.92% | |||||||||
Comm. & Disc. | 289 | 217 | 33.58% | Production Expenses 18.56% 16.58% | |||||
1.25% | 1.07% | ||||||||
Net Sales | 22,828 | 19,977 | 14.27% |
WORKING NOTES (RS, MILLIONS)
24.00 |
22.00 |
20.00 |
18.00 |
16.00 |
14.00 |
22 22 22 22 22 22 23 | 23 23 23 23 23 23 23 23 23 | ||||||||
- | - - - - | 23 | Mar | - - - - - - - | |||||
Aug | Sep | Nov | Jan | May | Jun | Aug | Nov | ||
Jul | Oct | Dec | Feb- | Apr- | Sep | Oct | |||
- | - | - | Jul | ||||||
1M KIBOR | 3M KIBOR | ||||||||
Finance Cost | FY'23 | FY'22 | YoY |
L.T. Finance | 468 | 238 | 54.29% |
S.T. Borrowings | 1,572 | 549 | 49.10% |
Total Finance Cost | 2,238 | 876 | 46.59% |
L.T. Loans (Incl. ST) | 6,640 | 5,315 | 11.66% |
S.T. Borrowings | 8,136 | 4,745 | 53.17% |
Avg. Borrowing Cost | |||
L.T. Loans | 7.05% | 4.48% | |
S.T. Borrowings | 19.32%11.57% | ||
LT. Loans @ LTFF + Spread
ST. Loans @ 1M/3M KIBOR + Spread
LTFF/TERF/ITERF: WEF, Jul 01, '15
Period of Financing | SBP Rate of Finance | End User's Rate |
Over 5 Years, Upto 10 Years | SBP + (0.50%, 1.75%) | 2.60%, 3.75% |
KEY NUMBERS: 5-YEARHISTORY
Key Numbers | 2023 | 2022 | 2021 | 2020 | 2019 |
Net Sales (Rs. Mn) | 22,829 | 19,977 | 11,484 | 8,771 | 8,492 |
P.A.T. (Rs. Mn) | 1,043 | 4,310 | 1,386 | 181 | 462 |
Fixed Assets (Rs. Mn) | 12,170 | 10,011 | 6,788 | 4,208 | 3,313 |
GP Margin (%) | 17% | 28% | 21% | 14% | 14% |
Op. Margin (%) | 14% | 25% | 18% | 11% | 11% |
NP Margin (%) | 5% | 22% | 12% | 2% | 5% |
Current Ratio (x) | 1.36 | 1.63 | 1.41 | 1.11 | 1.17 |
EPS (Rs.) | 169.18 | 699.40 | 224.93 | 29.44 | 74.91 |
Cash Div. | 250% | 1000% | 500% | 80% | 225% |
Production Cap. Conv. 20/s (Kgs, Mn) | 34.59 | 42.26 | 33.35 | 33.62 | 28.97 |
Actual Prod. Conv. 20/s (Kgs,Mn) | 30.54 | 39.97 | 31.43 | 28.73 | 25.46 |
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