GHGL is engaged in the business of manufacturing Float Glass and Glass containers. It has several types of offerings in each category catering to a wide variety of clients. Float glass is a flat and crystal clear glass, free from bubbles or layers. GHGL primarily supplies float glass to architects, builders and designers customized to their needs and requirements.

Glass containers, on the other hand, are supplied to pharmaceutical companies and food and beverage companies. Some of the company's well-known clients include GloxoSmithKline (GSK), Getz Pharma, Reckitt Benckiser, Abbott, Pepsi, CocaCola, Unilever and Nestle among many others. As per the company's annual report, Ghani Glass Limited is the leader in the domestic market, dominating the pharmaceutical category by owning 86 percent of the market share, 76 percent of food and beverages category and 82 percent of float glass category. On the international front, GHGL exports to about 29 countries including South Korea, UAE, India, Turkey, etc.

Shareholding pattern

Majority of the company is owned by the directors, CEO, their spouses and minor children at 60 percent, while 25 percent of the shares are hold by the local general public. The 'others' category own about 14 percent and the remaining 1 percent is distributed between the rest of the categories.

Historical performance With the exception of FY14,GHGL's top-line has increased through the years. Profitability seems to have peaked in FY17 after which it followed a downward trend.

Quarterly performance and future outlook The year 2019 saw a challenging environment with reduction in business activity especially the construction industry. Although revenue for the first quarter of FY20 increased by 42 percent compared to last year, the fall in business activity resulted in high inventory which posed a challenge for the company.

The company foresees challenging period due to high inflation, rupee devaluation and increasing energy costs. However, it expects growth further down the lane once economic stability sets in. With constant addition to capacity and upgrading and maintaining their facilities, the company hopes to maintain their market share and customer confidence and satisfaction.

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GHGL: Pattern of shareholding as at June 30,2019
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Categories of shareholders                                      %
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Directors, CEO, their spouses and minor children           60.095
Associated companies, undertakings and related parties     0.0333
NIT & ICP                                                  0.6856
Banks, DFIs, NBFIs, insurance companies,
takaful, modarabas and mutual funds                        0.0001
Modarabas and mutual funds                                 0.0296
General public:
Local                                                     25.4203
Foreign                                                    0.0013
Others                                                     14.039
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Total                                                         100
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Source: Company accounts

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Rs (mn)                                 1QFY20    1QFY19       YoY
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Net revenue- LHS                         4,312     3,028    42.40%
Cost of sales                          (3,260)   (2,064)    57.95%
Gross profit                             1,052       964     9.13%
General and administrative expenses      (194)     (128)    51.56%
Selling and distribution expenses        (232)     (181)    28.18%
Other operating expenses                  (47)      (44)     6.82%
Other operating income                      22         7   214.29%
Operating profit                           601       618    -2.75%
Finance cost                               (3)       (2)    50.00%
Share of profit/(loss) of associate         43      (25)  -272.00%
Profit before taxation                     641       591     8.46%
Taxation                                  (61)      (89)   -31.46%
Profit after taxation                      580       502    15.54%
EPS                                       1.07      0.93    15.05%
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