Qudsia Bano

Nagina Cotton Mills Limited’s sales revenue climbed 59% to Rs8.11 billion in the first nine months of the financial year 2021-22 from Rs5.11 billion in the corresponding period of fiscal 2020-21.

Similarly, the gross profit of the company grew 108% to Rs1.8 billion in the 9MFY22 from Rs867 million in the corresponding period of FY21.

The net income increased 138% to Rs1.2 billion compared with a profit of Rs487 million in the corresponding period of FY21, reports WealthPK.

As of June 30, 2021, directors, chief executive officers, their spouses and minor children owned 70.78% of the company’s shares .

Associated companies held 16.37% of the shares. Banks, development financial institutions and non-banking financial institutions owned 0.03%, insurance companies 1.70%, general public (local) 10.30%, and ‘others’ 0.81% of the shares.

Annual Results 2020-21

During the fiscal year 2020-21, the company maintained a decent sales trend, generating revenue of Rs7.2 billion, with an increase of 2% over Rs7.1 billion in 2019-20.

The gross profit for the year 2020-21 reached Rs1.42 billion, 139% up from Rs593 million the previous year.

The profit-after-tax for the year came in at Rs743 million, posting a mammoth 9646% increase over the profit of Rs7.6 million the previous year.

The timely purchase of raw materials and the installation of modern spinning equipment, which produced greater yarn quality and better selling prices, were the main drivers of higher profitability.

The earnings per share (EPS) of the company witnessed an increasing trend from 2017 to 2019. In 2018, the EPS stood at Rs8.46, and jumped to Rs16.5 in 2019. It then dropped to Rs0.41 in 2020 due to slowdown in economy as the Covid-19 pandemic raged.  However, the EPS ballooned to Rs39.76 in 2021 when the economy rebounded after the Covid-19-induced restrictions were eased. 

Nagina Cotton Mills Limited was incorporated in Pakistan on May 16, 1967, as a public limited company under the Companies Act, 1913 (repealed), now the Companies Act, 2017.

The principal business of the company is manufacture and sale of yarn.

Credit: Independent News Pakistan-WealthPk