Qudsia Bano

Colony Textile Mills Limited (CTM) announced its financial results for the first half (July-December) of the ongoing fiscal year 2022-23, reporting a significant decrease in revenue and pre-and-post-tax losses. CTM's revenue decreased by 41% to Rs9.8 billion during this period from Rs16.6 billion over the same months of FY22, reports WealthPK.\ The company also suffered a gross loss of Rs386 million compared to a gross profit of Rs1.2 billion during the two comparable periods, posting a negative growth of 131%. The company suffered a loss-before-tax of R1.18 billion in 1HFY23 compared to a profit-before-tax of Rs383 million over the same period of FY22, showing a negative growth of 409%.

Similarly, the company’s net loss stood at Rs990 million in 1HFY23 compared to net profit of Rs177 million over the same period of FY22, registering a year-on-year decrease of 660%.\ The decline in the company's financial performance can be attributed to various factors, including lower sales volume, decreased textile demand, and increased costs of raw materials. In addition, the ongoing energy crisis and adverse impact of the Covid-19 pandemic have also affected the overall economic environment and negatively impacted the company's operations.

Performance in 2021-22

The company's total revenue increased by 21% year-over-year to Rs30.8 billion in FY22, while gross profit grew by 29% to Rs2.9 billion. However, the company's net profit and earnings per share (EPS) saw a significant decline of 62%, standing at Rs286.3 million and Rs0.57, respectively. The decrease in net profit and EPS can be attributed to a drop in the company's profit-before-tax, which fell by 14% year-over-year to Rs962 million. Despite the decline, the company's management remains optimistic about the future and is committed to implementing strategies to improve profitability.

About the company

Colony Textile Mills is a public limited company incorporated in Pakistan on January 12, 2011 under the provisions of the now repealed Companies Ordinance, 1984. The principal activity of the company is the manufacturing and sale of yarn, fabric and garment made-ups as well as trading in real estate.

Credit: Independent News Pakistan-WealthPk