By Qudsia Bano ISLAMABAD, June 08 (INP-WealthPK): Revenues of Cherat Packaging Limited (CPL), a major supplier of cement bags, climbed 23% to Rs22.5 billion during the first nine months of the financial year (July-March 2021-22) from Rs18.4 billion in the same period last year. As a result, the company earned Rs3.4 billion in after-tax profit during the period. Due to high increases in coal and power rates, the cost of sales also increased by 20% during the period. Thanks to advantageous discount rates, the use of the wage financing programme, and the repayment of long-term loans, financing costs decreased compared to the same period last year.

Cherat Packaging Limited Profit& Loss Accounts For the Period Ended in March 2022	Period ended (Rs in ‘000)		YOY Growth %
	March 31, 2022	March 31, 2021
Turnover – net Cost of sales	22,581,450 (16,343,799)	18,420,773 (13,575,623)	23% 20%
Gross profit Distribution costs Administrative expenses Other expenses Other income	6,237,651 (245,881) (298,520) (929,963) 303,740	4,845,150 (212,836) (169,368) (698,665) 65,010	29% 16% 76% 33%
Operating profit Finance costs	5,611,428 (905,322)	4,211,495 (1,205,628)	33% -25%
Profit before taxation Taxation	4,706,106 (1,270,801)	3,005,867 (783,589)	57% 62%
Net profit	3,435,305	2,222,278	55%

The industry has faced a tremendous challenge since international commodity prices, particularly for oil and coal, have risen significantly. Coal prices have soared to never-before-seen heights, with no signs of abating anytime soon. Cherat Packaging Limited (CPL) Annual Performance Summary

PATTERN OF SHAREHOLDING – Cherat Packaging Limited (CPL) As of June 30, 2021
Categories of Shareholders	Shares Held	Percentage
Directors, Chief Executive Officers and their spouse(s), and minor children	1,999,842	4.7
Associated Companies, undertakings, and related parties	11,724,952	27.59
Executives	19,700	0.05
NIT and ICP	-	-
Banks, Development Financial Institutions, Non-Banking Financial Institutions	574,626	1.35
Insurance Companies	10,505,901	24.72
Modarabas and Mutual Funds	686,082	1.61
General Public
Local	13,903,028	32.70
Foreign	766,843	1.80
Foreign Companies	2,000	0.00
Others	2,323,861	5.47
Total	42,506,835	100.00
Source: Company financial Report

  As of June 30, 2021, directors, chief executive officers and their spouse(s) and minor children owned 4.7% of the company’s shares. Associated corporations, undertakings and related parties owned 27.59% of the total shares. The general public (local) owned 32.70% and foreign 1.80% of the shares, respectively, while banks, development financial institutions, and non-banking finance companies owned 1.35% of the shares. “Others” held 5.47% of the shares. Insurance companies owned 24.72% of the total shares. Company Turnover

Cherat Packaging Limited (CPL) Historical Turnover Ratios
	Unit	2021	2020	2019	2018	2017
Operating Performance Ratios
Inventory turnover ratio	Times	3.23	2.87	2.61	3.42	3.66
No. of Days in Inventory	Days	112	125	138	105	98
Debtor turnover ratio	Times	5.33	5.34	6.17	7.26	7.97
No. of Days in Receivables	Days	68	67	58	50	45
Total Assets turnover ratio	Times	0.89	0.85	0.71	0.76	1.16
Fixed Assets turnover ratio	Times	2.24	1.85	1.57	1.48	3.53
Creditor turnover ratio	Times	16.29	18.25	19.16	10.34	18.68
No. of Days in Creditors	Days	22	20	19	35	19
Operating Cycle	Days	157	172	177	120	124

As the company works to implement good inventory management, its inventory turnover has been on the rise. Since the company's primary raw materials are imported, its inventory turnover days remain high. Keeping the customers’ creditworthiness in mind, the company aims to keep its credit level up to 45 days. The company feels that solid relationships with vendors are essential for ensuring the smooth supply of goods and services, which is why it works hard to maintain them. The asset turnover ratio increased after the firm implemented effective management practices. In 2020-21, which was marked by economic uncertainty, Cherat Packaging went above and beyond to help its clients while still delivering a great financial performance. The company's sales of cement bags manufactured during the year were boosted by the country's historic surge in cement consumption. During 2020-21, the company's revenues increased by 19% due to higher sales volumes. Despite inflationary pressures on various input goods, such as Kraft paper and polypropylene granules, the company successfully maintained its manufacturing costs. Other expenses increased during the financial year 2020-21 owing to increasing profitability, primarily due to provisions for WPPF (Workers Participation Fund) and WWF (Workers Welfare Fund). Financing costs decreased as a result of lower discount rates and the company's low-cost salary financing facility. The company made an after-tax profit of Rs855 million for the year ended June 30, 2021, compared to Rs70 million the previous year. Higher earnings per share (EPS) was a direct indication of the company's overall performance. The current year's (2021) (EPS) of Rs20.12 was the highest since 2018. This is attributed to higher sales, more efficient production, and more effective marketing methods. Furthermore, the market price of the company's shares climbed during the course of the year. This is primarily due to the company's performance in comparison to the expectations of its shareholders. Cherat Packaging Limited Vs KSE-100 It is worth noting that CPL has been the main producer and supplier of packaging material to the cement industry in Pakistan since its inception. It is ISO 9001:2008 certified and has won numerous prestigious awards, including the Best Company Award from the Karachi Stock Exchange and the Management Association of Pakistan. CPL can produce 265 million paper bags and 195 million polypropylene bags per year. CPL manufactures a variety of top-quality cement bags using the highest-grade raw materials to meet the individual needs of its customers. With the addition of the polypropylene bag plant, CPL is able to meet the cement packaging requirements of its valuable customers by providing single-window operation. CPL is the only company in Pakistan, and in the region, to produce and supply both varieties of cement bags – bags made from Kraft paper and polypropylene granules.