Hifsa Raja

Johnson Phillips (Pakistan) Limited suffered a gross loss of Rs2.1 million in the first half of the ongoing fiscal year 2022-23 compared to a gross profit of Rs16.1 million over the same period last year, showing a negative growth rate of 113%. Similarly, the company sustained operational loss, which stood at Rs5.3 million in 1HFY23, posting a negative growth of 142% over the operational profit of Rs12.8 million in 1HFY22. Also, the company bore a net loss of Rs4.33 million in 1HFY23 compared to a net profit of Rs9.4 million in 1HFY22, registering a huge negative growth of 146%, reports WealthPK.

Performance in FY22

During FY22, the company generated net sales worth Rs86.5 million.  But it continued to face gross loss, which stood at Rs59 million in FY22 compared to a gross loss of Rs3.9 million in FY21. However, the profit-before-tax for FY22 stood at Rs38 million compared to a loss-before-tax of Rs15.3 million in FY21. The company also posted a net income of Rs33 million in FY22 compared to a net loss of Rs14.2 million in FY21.

Industry comparison

Johnson and Phillips (Pakistan) Limited’s competitors include EMCO Industries, Pakistan Cables Limited, Pak Elektron Limited, and Orient Rental Modaraba.

Pak Elektron Limited has the largest market capitalisation of Rs9.1 billion followed by Pakistan Cables Limited’s Rs3.7 billion. Johnson and Phillips (Pakistan) Limited has the least market capitalisation among its competitors of Rs206.4 million.

Earnings growth analysis

The company bore a loss per share from 2019 to 2021, but the year 2022 proved productive for the firm as it posted earnings per share of Rs6.18. Except 2020 when the earnings per share growth remained negative at 53.38%, the growth remained positive in 2019, 2021 and peaked in 2022 at 335.88%.

The net sales showed no specific growth from 2018 to 2021, but 2022 showed a significant growth in sales and profits. Gross profit was also healthy in 2022.

Company profile

Johnson & Phillips was incorporated in Pakistan as a public limited company on April 15, 1961 under the repealed Companies Act, 1913 (now Companies Act, 2017). The company is principally engaged in manufacturing, installation and selling of electrical equipment.

Credit: Independent News Pakistan-WealthPk