Kohinoor Textile Mills posts 72% increase in profit

Kohinoor Textile Mills Limited (KTML) registered a profit after tax (PAT) of Rs9.19 billion for the fiscal year ended June 30, 2023, an increase of over 72% compared to Rs5.33 billion recorded in the same period of the previous year, showed the company’s financial results posted at the Pakistan Stock Exchange (PSX) on Monday.

The profit translates in to Earnings Per Share (EPS) of Rs21.55 in FY23, in comparison to an EPS of Rs12.93 recorded in the same period last year.

The increase in profits comes in contrast to the ongoing decline plaguing the country’s textile sector.

Earlier this month, a delegation from the All Pakistan Textile Mills Association held a crucial meeting with Dr Gohar Ejaz, the Caretaker Federal Minister for Commerce and Industries and Production.

During the meeting, the delegation engaged in a comprehensive discussion with the minister regarding the critical issues plaguing the textile industry. One of the major issues highlighted by the delegation was the energy tariff, which they emphasised should be regionally competitive to ensure the sustainable operation of textile mills and to effectively compete in the global market.

Meanwhile, on a consolidated basis, KTML’s revenue grew by over 18% to Rs104.12 billion in FY23 from Rs87.98 billion in FY22.

However, amid high cost of sales Kohinoor’s gross profit rose by only 7% to Rs25.8 billion as compared to Rs24.13 billion.

The textile firm witnessed a remarkable decline in its other expenses, which reduced from Rs6.26 billion in FY23 to Rs1.79 billion in FY23.

However, the company’s finance cost witnessed a massive hike of over 63% YoY from Rs2.63 billion in FY22 to Rs4.3 billion in FY23.

The increase in cost of finance is attributed to rise in policy rate during the period.

This translated into a profit before tax (PBT) of Rs15.56 billion in FY23, an increase of over 50%.

Apart from the financial results, the Board of KTML announced to invest up to Rs2 billion in its subsidiaries, Maple Leaf Cement Factory Limited (MLCF) and Maple Leaf Capital Limited (MLCL), to meet their working capital requirements.

Kohinoor Textile Mills Limited was established under the Companies Act, 1913. The public limited company manufactures yarn and cloth, processes and stitches the cloth.