Kohinoor Mills Limited has started the Fiscal year 2016 on a bright note, and continued to perform well during the six-month into the year. Sales were up by six percent year-on-year, and costs were kept in check, yielding a 100 bps improvement in gross profits.
During the half-year ended December 2015, the performance of dyeing division was exceptional. The segment has seen better capacity utilization and improved margins resulted in performance improvement. Being at the value-added end of the fabric business, the higher product development and increase marketing efforts helped the division. However, the weaving division owing to greater international competition and depressed cloth prices, the profitability was comparatively lower in this division. The performance of genertek division fuel and energy situation remained manageable during the period under review owing to a significant reduction in heavy fuel oil prices. The higher volumes, cost cutting and increase in other income has helped Kohinoor Mills Limited to the end the first half of the FY16 on a good note. The Company has reported 38 percent year-on-year improvement in its earrings, which is quite a good performance for a company which runs a primarily export-oriented business.
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