Dewan Farooque Spinning Mills Limited’s (DFSM) sales climbed 12% to Rs504 million in the first nine months of the fiscal year 2021-22 (9MFY22) from Rs450 million over the corresponding period of FY21, but the company suffered losses in profitability. The company’s gross loss jumped 347% to Rs86 million in 9MFY22 from Rs19 million over the same period in FY21.
The company’s operating loss increased 58% to Rs117 million in 9MFY22 from Rs74 million in 9MFY21. The after-tax loss increased to Rs149 million in 9MFY22 from a loss of Rs101 million in 9MFY21, showing a 47% negative growth. The loss-before-tax also increased during this period to Rs132 million from a net loss of Rs95 million in 9MFY21, reflecting a 39% negative growth, reports WealthPK.
As of June 30, 2021, directors, their spouse(s), and minor children owned 5.24% of the total shares of the company. Associated companies, undertakings & related parties owned 38.62% of the shares. The general public (local) held 55.23% and ‘others’ 0.91%, respectively.
Performance in FY21
During the fiscal year 2020-21, the company generated sales of Rs602 million over Rs431 million in 2019-20, registering an increase of 39%. The company managed to decrease its gross loss in FY21 to Rs24 million from Rs99 million in FY20, registering a 75% decrease in loss.The operating profit decreased 37% to Rs82 million from Rs130 million in FY20.
The loss-before-tax for FY21 stood at Rs119 million compared to Rs210 million in FY20, showing a 43% decrease in the loss. Similarly, the loss-after-tax for FY21 was Rs112 million compared to Rs197 million in FY21, showing a 43% decrease in loss.
The earnings per share of the company have remained in the negative territory since 2019, reflecting its dwindling profitability.
The company’s profitability – gross profit ratio and profit before tax – remained low over the last six years, which means the company is overall in loss. Dewan Farooque Spinning Mills was incorporated in Pakistan on December 22, 2003 as a public limited company under the now repealed Companies Ordinance, 1984. The principal activity of the company is the manufacturing and sale of fine-quality yarn.
Credit : Independent News Pakistan-WealthPk