CORPORATE BRIEFING SESSION, FY24
December 12, 2024
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). The company also produces different types of socks which are useful for sports, work, leisure and various seasons as well.
- Flagship company of the Group.
- The Group has successfully diversified into auto parts and trading.
- Commenced its operations with 12,230 spindles, which have increased to 85,476 as of today (Up: ~7x in last 35 years) along with 3,592 rotors and 264 knitting machines.
- Operating in both, local and int'l markets during FY24 comprises of Local Sales: 4% and Exports Sales: 96% of Gross Sales. (Direct Export 21%, Indirect Export 79%);
- Geared towards acquiring latest technology to provide its customers premium yarn and socks.
- Operating its own power plant of 17.1 MW and Solar Capacity of 10.5 MW currently installed which will be increased to 12.7 MW by end of January 2025.;
MANAGEMENT INFORMATION
Board of Directors
Mr. Muhammad Aslam Parekh | Chairman |
Mr. Abdul Kadir Adam | Chief Executive |
Mr. Mohammad Yasin Siddik | Executive Director |
Ms. Naila Hasan | Independent Director |
Mr. Mohammad Raziuddin Monem | Independent Director |
Ms. Lubna Asif Balagamwala | Non-Executive Director |
Mr. Tanzeel Abdul Sattar (NIT Nominee) | Non-Executive 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'24 | FY'23 | YoY |
Sales | 27,076 | 22,829 | 19% |
Gross Profit | 3,740 | 3,939 | -5% |
Operating Profit | 2,736 | 3,113 | -12% |
Finance Cost | 3,071 | 2,238 | 37% |
PBT | (512) | 1,043 | -149% |
PAT | (441) | 1,043 | -142% |
Total Assets | 30,540 | 28,049 | 9% |
Total Equity | 8,492 | 9,153 | -7% |
GP Margin (%) | 14% | 17% | -20% |
NP Margin (%) | -2% | 5% | -136% |
EPS (Rs.) | (71.60) | 169.18 | -142% |
DPS (Rs.) | 0.00 | 25.00 | -100% |
FINANCIAL SUMMARY
PKR Million | 1Q FY'25 | 1Q FY'24 | YoY |
Sales | 7,829 | 6,753 | 16% |
Gross Profit | 1,121 | 1,040 | 8% |
Operating Profit | 873 | 805 | 8% |
Finance Cost | 663 | 728 | -9% |
PBT | 101 | 24 | 315% |
PAT | 101 | 24 | 315% |
Total Assets | 30,332 | 30,540 | -1% |
Total Equity | 8,593 | 8,492 | 1% |
GP Margin (%) | 14.32% | 15.41% | -7% |
NP Margin (%) | 1.29% | 0.36% | 258% |
EPS (Rs.) | 16.40 | 3.96 | 314% |
BUSINESS REVIEW (ANNUAL)
- Net revenue grew by 19%,YoY to PKR27bn, in FY24.
- Export sales grew by 17% in FY24 and local sales up by 63% in FY24.
- In FY24, utilization level of Spinning Division stood at 91% and Sock reached at 81%.
- The company incurred capital expenditure of PKR4bn in FY24.
WORKING NOTES (RS, MILLIONS)
Sales | FY'24 | FY'23 | |
Gross Local Sales | 1,195 | 731 | 63.35% |
Gross Export Sales | 26,056 | 22,317 | 16.75% |
27,251 | 23,048 | 18.23% | |
Gross Local Sales | 4.38% | 3.17% | |
Gross Export Sales | 95.62% | 96.83% | |
Raw Mat. Sales | 41.94 | 69.85 | -39.96% |
0.15% | 0.30% | ||
27,293 | 23,118 | 18.06% | |
Comm. & Disc. | 217 | 289 | -25.04% |
0.80% | 1.25% | ||
Net Sales | 27,076 | 22,829 18.60% |
Cost of Sales | FY'24 | FY'23 | YoY | ||
Raw Mat. Consumed | 16,300 | 15,495 | 5.20% | ||
Production Expenses | 5,956 | 3,506 | 69.90% | ||
22,256 | 19,001 | 17.13% | |||
Total COGS | 23,336 | 18,889 | 23.54% | ||
As a % of Net Sales | |||||
Raw Mat. Consumed | 60.20% | 67.88% | |||
Production Expenses | 22.00% | 15.36% | |||
Share in COGS | |||||
Raw Mat. Consumed | 69.85% | 82.03% | |||
Production Expenses | 25.52% | 18.56% |
WORKING NOTES (RS, MILLIONS)
24.00
22.00
20.00
18.00
16.00
14.00
12.00
Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 | Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 | |||
1M KIBOR | 3M KIBOR | |||
Finance Cost | FY24 | FY23 | YoY |
L.T. Finance | 1,009 | 468 | 116% |
S.T. Borrowings | 1,753 | 1,406 | 25% |
Total Finance Cost | 2,762 | 1,874 | 47% |
L.T. Loans (Incl. ST) | 8,225 | 6,640 | 24% |
S.T. Borrowings | 9,079 | 8,137 | 12% |
Avg. Borrowing Cost | |||
L.T. Loans | 12% | 7% | 5% |
S.T. Borrowings | 19% | 17% | 2% |
LT. Loans @ SBP + Spread
ST. Loans @ 1M/3M KIBOR + Spread
LTFF: WEF, Jul 01, '15
Period of Financing | SBP Rate of Finance | End User's Rate |
Over 5 Years, Upto 10 Years | SBP + (0.60%, 1.75%) | 2.60%, 3.75% |
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