Qudsia Bano

Fazal Cloth Mills’ sales increased 27% to Rs36.49 billion in the first half of the current fiscal year 2022-23 (1HFY23) from Rs28.7 billion over the same period of last year, reports WealthPK. After deducting depreciation cost of Rs865 million, the company reported an after-tax profit of Rs1.075 billion (pre-tax profit of Rs1,88 billion) in 1HFY23 as opposed to an after-tax profit of Rs3.13 billion (pre-tax profit of Rs3.35 billion) in 1HFY22 with Rs797 million depreciation cost. The company produced earnings before interest, taxation, depreciation and amortization (EBITDA) of Rs4.77 billion in 1HFY23 compared to Rs5.23 billion in 1HFY22.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales leapt to Rs65.4 billion from Rs52 billion in FY21, posting an increase of 25% year-on-year. The gross profit for FY22 stood at Rs11.2 billion, 40% up from Rs8 billion in FY21. The before-tax profit increased to Rs5.9 billion in FY22 from Rs5.56 billion in FY21, posting a meagre 6% increase year-on-year. The company’s after-tax profit, however, decreased to Rs4.6 billion in FY22 from Rs5.4 billion in FY21, posting a negative growth of 15% year-on-year.

In FY21, the earnings per share of the company stood at Rs181.06, but decreased to Rs153.68 in FY22, posting a negative growth of 15% year-over-year.  

About the company

Fazal Cloth Mills was incorporated in Pakistan in 1966 as a public limited company under the Companies Act, 1913 (now the Companies Act, 2017). The company is principally engaged in the manufacture and sale of yarn and fabric.

Credit: Independent News Pakistan-WealthPk