Gul Ahmed Textile Mills' profit declines 41.6% in 1HFY23

Gul Ahmed Textile Mills Limited (GATM) witnessed a lacklustre first half of fiscal year 2023 after the company recorded a significant decline in earning during the six-month period.

As per the company’s consolidated profit and loss statement shared with the Pakistan Stock Exchange (PSX) on Monday, GATM posted Rs2.178 billion in profit after tax with earnings per share (EPS) at Rs3.53 per share for the half year ended December 31 2022. This is 41.6% lower when compared to the profit of Rs3.73 billion and an EPS of Rs6.05 posted during the corresponding period of the previous year.

The decline is attributed to the increase in finance cost, which hit Rs2.65 billion, as compared to Rs1.38 billion in the same period last year, an increase of 92%.

The company saw its revenue rise to Rs62.11 billion in the six months of the current fiscal as compared to Rs56.76 billion recorded in the same period last year, showing a YoY increase of 9.4%.

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On the other hand, the cost of sales also increased to Rs50.66 billion in 1HFY23 as compared to Rs44.78 billion in the same period the previous year i.e. showing a rise of over 13%, which squeezed the gross profit to Rs11.45 billion.