Fakiha Tariq

Despite depressed economic activity, Pakistan’s glass and ceramics sector earned healthy profits during the first quarter (July-Sept) of the ongoing fiscal year 2022-23, WealthPK reports. Though inflationary pressures resulting from the economic rebound post-Covid-19 pandemic doubled the costs of sales for glass and ceramic industry, six out of seven active trading companies raised gross and net profits of Rs3.2 billion and Rs1.4 billion cumulatively during 1QFY23. Overall statistics showed that the glass and ceramics sector made total sales of Rs19 billion during the period, and gross profit to sales ratio stood at 16.60%. Whereas, the net profit margin remained 7.45% in the first quarter of FY23.

Glass and ceramics sector of Pakistan is dominated by nine companies listed on the Pakistan Stock Exchange. On the basis of market capitalisation, Ghani Glass Limited (GHGL) is the leading company with a market cap of Rs32.3 billion, followed by Tariq Glass Industries Limited (TGL) with a market value of Rs13.7 billion. Ghani Value Glass Limited (GVGL) is valued at Rs4.3 billion.

Balochistan Glass Limited (BGL), Shabbir Tiles and Ceramics Limited (STCL)and Ghani Global Glass Limited (GGGL) with the market caps of Rs2.6 billion, Rs2.4 billion and Rs2.1 billion, respectively, ranked fourth, fifth and sixth on PSX.

In seventh and eighth position are Frontier Ceramics Limited (FRCL) and Karam Ceramics Limited (KCL) having a market cap of around Rs1 billion each. Regal Ceramics Limited (REGAL) currently holds a defaulter firm status on PSX. However, for the first quarter of FY23, KCL and REGAL were non-active firms on PSX.

Glass and ceramics sector – the top three gainers in 1QFY23

GVGL led the glass and ceramics sector during the first quarter of FY23 in terms of profit earning. GVGL scored the highest gross profits of 36.55% over the sales. GVGL made sales of Rs620 million and got gross profit of Rs226 million over it. Net profit was reported to be Rs112 million, which gave the net profit margin of 18.18%. GVGL’s shareholders enjoyed earnings of Rs1.75 per share during 1QFY23.

GHGL reported 25.13% of gross profit and 14.57% of net profit over sales of Rs2.9 billion. EPS value for GHGL clocked in at Rs1.38 per share. The third company among the top three gainers of 1QFY23 in glass and ceramics sector was GGGL with a reported gross profit of 22.40% and net profit of 5.08%. The total sales made by GGGL during 1QFY23 were valued at Rs474 million.

Glass and ceramics sector – the next top three gainers in 1QFY23

TGL ranked fourth with a reported gross profit of Rs709 million over sales of Rs6.4 billion, giving it a gross profit margin of 10.98%. In terms of EPS value, TGL led its peer companies with the value of Rs2.56 per share. During 1QFY23, TGL earned net profit margin of 5.49%.

On number fifth stood STCL, with a gross profit margin of 10.44%. However, during 1QFY23, STCL experienced net loss and negative EPS value. FRCL, with gross profit and net profit ratios of 6.53% and 1.84%, was ranked number six in terms of profitability during 1QFY23.

Lastly, BGL and KCL were the only two participants, showing gross and net losses during the first quarter of FY23.

Credit : Independent News Pakistan-WealthPk