Hifsa Raja

The sales of Colony Textile Mills Limited climbed 37% to Rs24 billion in the first nine months of the fiscal year 2021-22 (9MFY22) from Rs17 billion over the corresponding period of FY21. The gross profit increased 22% to Rs2.11 billion in 9MFY22 from Rs1.73 billion over the same period of FY21. The profit-before-tax inched up 3% to Rs801 million in 9MFY22 from Rs777 million in 9MFY21.The profit-after-tax edged up 3% to Rs534 million in 9MFY22 from Rs519 million in 9MFY21, reports WealthPK.

As of June 30, 2021, individuals owned 97.15% of the total shares of the company. Joint stock companies owned 1.66% of the shares. The remaining negligible amounts of shares were held by ‘others’, NIT and ICP, financial institutions, insurance companies, modarabas and mutual funds.

Financial Performance in FY21

During the fiscal year 2020-21, the company generated sales of Rs25 billion over Rs17 billion in 2019-20, registering an increase of 44% year-on-year.  The gross profit for FY21 stood at Rs2.22 billion, registering an increase of 136% over the gross profit of Rs945 million in FY20.

The profit-before-taxation for FY21 stood at Rs1.12 billion as against a loss of Rs170 million in FY20, showing a massive 759% decline in loss. The company also posted a profit-after-tax of Rs748 million in FY21, recovering from Rs375 million in loss in FY20, showing a 300% decrease in loss.

The earnings per share of the company stood at Rs2.88 in 2019, but then plunged to Rs-0.75 in 2020. It again jumped to Rs1.5 in 2021 before dropping to Rs0.57 in 2022.

Profitability – gross profit and net profit margins – remained elevated in 2019 and 2020. Colony Textile Mills Limited is a public limited company by shares incorporated in Pakistan on January 12, 2011 under the Companies Ordinance, 1984, now replaced with Companies Act, 2017. The principal activity of the company is manufacturing and sale of yarn, fabric, made-up garments and trading in real estate.

Credit : Independent News Pakistan-WealthPk