Reliance Weaving Mills profit jumps 145% in 9MFY22

October 04, 2022

Hifsa Raja

Reliance Weaving Mills Limited’s gross revenue climbed 30% to Rs22 million in the first nine months of the previous fiscal year 2021-22 (9MFY22) from Rs17 million over the corresponding period of FY21.

The gross profit, showing an 85% growth, stood at Rs4.29 million in 9MFY22 compared to Rs2.32 million over the same period of FY21.

The operating profit stood at Rs2.78 million, up 125% from Rs1.23 million in 9MFY21.

The after-tax profit showed a growth of 145% and reached Rs2.52 million in 9MFY22 from Rs1.03 million in 9MFY21.

Earnings per share (EPS) stood at Rs82.01 in 9MFY22 compared to Rs33.45 over the same period in FY21, showing a growth of 145%, reports WealthPK.

As of June 30, 2021, directors, their spouse(s) and minor children owned 78.11% of the total shares of the company. Associated companies held 2.74%, NIT and ICP 1.93%, banks, development financial institutions and non-banking financial institutions 0.01%, general public (local) 16.06%, and ‘others’ owned 1.15% shares, respectively.

Financial Performance

During the fiscal year 2020-21, the company generated revenue of Rs24 billion over Rs17 billion in 2019-20, registering an increase of 39%.  The gross profit for FY21 was Rs3.50 billion, up 70% over Rs2.06 billion in FY20. Operating profit for FY21, showing an increase of 111%, settled at Rs2.97 billion compared to Rs1.40 billion in FY20. Profit-before-tax for FY21 was Rs2.01 billion compared to Rs147 million in FY20, posting a huge increase of 1268%. Similarly, profit-after-tax for FY21 was Rs1.73 billion as compared to Rs61 million in FY21, again showing a hefty increase of 2728%.

The EPS remained in the negative territory and settled at Rs10.08 in 2018, reflecting the company suffered losses during the year. However, the EPS recovered and settled at Rs16.32 in 2019. But again, it dipped to as low as Rs1.99 in 2020. But 2021 saw the company perform well, which helped the EPS jump to Rs56.24, reflecting healthy profits.

The company’s profitability – gross and operating profits – kept increasing steadily since 2016 before they peaked in 2021. Reliance Weaving Mills Limited was incorporated in Pakistan as a public limited company on April 7, 1990, under the now repealed Companies Ordinance, 1984. The company commenced its operations on May 14, 1990, and is principally engaged in the manufacture and sale of yarn and fabric.

Credit : Independent News Pakistan-WealthPk