ISLAMABAD: Revenues for JK Spinning Mills Limited rose 57% to Rs27.33 billion in the fiscal year that ended on June 30, 2022, from Rs17.40 billion in fiscal 2020-21.
The company achieved the highest-ever sales revenues, volumes, and profitability during the year, reports WealthPK, quoting the firm’s financial statistics.
JK Spinning Mills Limited is a public-limited company incorporated in Pakistan on January 7, 1987 under the Companies Ordinance, 1984, which has now been replaced with Companies Act, 2017.
The company works in the textile manufacturing industry, which involves ginning, spinning, sewing, as well as the purchase, sale, and other transactions of yarn, textiles and other products.
The company also made a hefty gross profit of Rs6.16 billion in FY22, up 84.90% from Rs3.33 billion achieved in FY21.
The company posted over 90% growth in its profit-before-tax, which went up to Rs4.08 billion in FY22 from Rs2.14 billion in FY21.
The company’s net profitability increased significantly as a result of the considerable top-line growth, more than doubling from Rs1.81 billion in FY21 to Rs3.66 billion in FY22.
The earnings per share (EPS), which was Rs17.71 the year before, increased significantly to Rs35.79 in FY22.
Shareholding pattern
As of June 30, 2022, the company’s directors, their spouses and minor children owned 69.79% of the shares. The chief executive officer possessed over 24% of the total shares. Local investors owned 5.87% of the shares. Banks, DFIs, NBFIs, insurance companies and modarabas held a negligible number of shares.
Company’s performance over the years
In 2019, the company’s sales revenue increased to Rs13.68 billion from Rs9.90 billion in 2018.
The company’s gross profit increased by 84% year-over-year to Rs1.91 billion from Rs1.04 billion the previous year.
The profit-after-tax for the year increased by 112% to Rs716 million from Rs337 million in the previous year. As a result, the EPS rose from Rs4.62 in 2018 to Rs9.8 in 2019.
In 2020, the company’s sales increased 8.3% to Rs14.82 billion from Rs13.68 billion the previous year.
The gross profit increased from Rs1.91 billion in 2019 to Rs2.49 billion in 2020.
The company declared a net profit of Rs1.14 billion in 2020 over Rs716 million in 2019. The EPS increased from Rs9.8 to Rs15.63.
The company’s topline climbed to Rs17.40 billion in 2021 from Rs14.82 billion in 2020 due to an increase in product demand.
The increase in gross profit to Rs3.33 billion from Rs2.49 billion the previous year was mostly attributed to growing demand and recovery of the economy following the lifting of the Covid-19-induced limitations.
The net profit increased from Rs1.14 billion to Rs1.81 billion.
As a result, the EPS climbed to Rs17.71 from the previous year’s Rs15.63.
Future outlook
The country’s cotton production will be substantially lower than anticipated because the crop has been extensively damaged in the recent flooding.
The textile export-oriented industry is facing liquidity crunch amid increasing cotton prices, devaluation of rupee against the US dollar, delay in shipments and working capital requirements of textile exporters.
However, the management of JK Spinning Mills Limited is concentrating efforts on reducing costs by increasing capacity and improving efficiencies in order to achieve the desired financial outcomes for the upcoming fiscal year.
