Fakiha Tariq

Pakistan’s glass and ceramics sector pushed up its sales by 21.6%, but posted a 1.3% and 7.5% drop, respectively, in gross and net profitability during the first nine months (July-March) of the fiscal year 2022-23 compared to the corresponding period of the previous fiscal, reports WealthPK. In the 9MFY23, the Pakistan Stock Exchange-listed glass makers collectively posted gross revenue of Rs66.2 billion and gross profit of Rs15 billion, thus coming up with a gross profit ratio of 23%. The sector posted net profit of Rs8.4 billion and a net profit ratio of 12.75% in 9MFY23.

In comparison to the same period of FY22, the glass and ceramics sector’s revenues increased by 21.6% from Rs54.5 billion to Rs66.2 billion in 9MFY23. Contrary to this, the gross profit dropped by 1.3% in 9MFY23 from Rs15.6 billion in 9MFY22. The net profit also decreased by 7.5% in 9MFY23 from Rs9.1 billion declared in 9MFY22. A total of eight firms in the glass and ceramics sector are listed on PSX with a collective market capitalisation of Rs55.04 billion.

Profitability Review – 9MFY23

Ghani Glass Limited (GHGL) beat its peers by marking highest sales, gross profit and net profit. GHGL also led the sector in terms of profitability ratios. Tariq Glass Industries Limited (TGL) came up with the highest earning per share (EPS). Balochistan Glass Limited (BGL) posted the gross and net losses, whereas Shabbir Tiles & Ceramics Limited (STCL) declared net loss in 9MFY23.

GHGL posted gross revenue of Rs32 billion and gross profit of Rs8.8 billion. The company posted net profit of Rs6.4 billion. Therefore, the gross and net profit ratios turned out to be 28% and 20.17%, respectively. In 9MFY23, GHGL reported the earnings per share of Rs7.71.

TGL posted gross profit of Rs4.2 billion and net profit of Rs2.1 billion on gross revenue of Rs21 billion. Therefore, the gross and net profit ratios were calculated at 19% and 10.05%, respectively. In 9MFY23, the company reported earnings per share of Rs12.73. In 9MFY23, BGL posted gross loss of Rs129 million and net loss of Rs244 million on  gross revenue of Rs162 million. Therefore, it posted gross and net loss ratios of 80% and 150.27%, respectively. In 9MFY23, BGL reported loss per share of Rs0.94.

STCL posted gross revenue of Rs10.4 billion in 9MFY23. The company declared gross profit of Rs2.12 billion and net loss of Rs5.3 million. STCL’s gross profit ratio was reported to be 20%, whereas the glass firm bore net loss ratio by 0.51%. In 9MFY23, STCL showed loss per share of Rs0.22. Ghani Global Glass Limited (GGGL) posted gross profit of Rs404 million and net profit of Rs87 million on gross sales of Rs1.72 billion. Therefore, the gross and net profit ratios were reported to be 24% and 5.08%, respectively. In 9MFY23, GGGL reported earnings per share of Rs0.36.

Credit: Independent News Pakistan-WealthPk