ISLAMABAD: The sales of Sunrays Textile Mills Limited increased by 12.93% to Rs9.75 billion during the fiscal year that ended on June 30, 2022 from Rs8.64 billion in the financial year 2020-21, reports WealthPK.
During FY22, the company’s revenue and profitability increased significantly.
Sunrays Textile Mills was incorporated in Pakistan on August 27, 1987 as a public-limited company under the Companies Ordinance, 1984. The company is principally engaged in trade, manufacture and sale of yarn.
The company saw a substantial increase in top line, with the gross profit rising by 64.4% to Rs2.60 billion in FY22 from Rs1.58 billion the year before. The profit before taxation jumped from Rs1.23 billion in FY21 to Rs2.06 billion in FY22, with an increase of 66%.
Compared to Rs1.15 billion in FY21, the profit after tax stood at Rs1.91 billion in FY22, posting an increase of 66%.
The earnings per share (EPS) rose exponentially due to the considerable growth in net profit, improving from Rs55.56 in FY21 to Rs92.26 in FY22.
Shareholding pattern
As of June 30, 2022, the company’s directors, the chief executive officer, their spouses and minor children owned 68.92% of shares. Individual investors held 24.47% of shares and associated companies possessed roughly 1%. Financial institutions, insurance companies and joint stock companies collectively owned nearly 1% of shares, whereas mutual funds held 4.62%.
Company’s performance over the years
In 2019, the company’s sales revenue increased to Rs6.08 billion from Rs4.95 billion in 2018.
The company’s gross profit surged to Rs965 million from Rs637 million in the previous year, registering a 51.5% increase year-over-year.
The profit-after-tax for the year jumped to Rs472 million, 67.4% higher than the previous year’s Rs282 million. Resultantly, the EPS increased to Rs68.37 in 2019 from Rs40.85 a year before.
In 2020, the company managed to increase revenues by 6.34% to Rs6.47 billion from Rs6.08 billion the year before despite the Covid-19 pandemic and difficult economic situation.
However, the business’s gross profit decreased from Rs965 million the previous year to Rs911 million this year.
During the year, the company reported a net profit of Rs560 million against Rs472 million in 2019. The EPS for the year increased to Rs81.18 from Rs68.37 the previous year.
In 2021, due to increase in demand for products, the company’s top line increased to Rs8.64 billion from Rs6.47 billion in 2020.
The gross profit increased to Rs1.58 billion from Rs911 million the previous year, principally because of rising demand and the economy’s rebound after the Covid-19-induced restrictions were lifted.
The net profit took a massive leap to Rs1.15 billion from Rs560 million the previous year.
The company reported EPS of Rs55.56 for this year.
Recent results and future outlook
A worldwide recessionary outlook and domestic structural reforms have created uncertainty in Pakistan’s business environment. The recent floods have made things even worse.
The government abolished energy-related subsidies and imposed a super tax on corporate sector in order to meet income targets under the IMF programme, which significantly raised the cost of doing business in the country.
Furthermore, the recent fluctuations in the exchange rate and the tight monetary policy are likely to weaken the company’s fundamentals.
According to the company’s financial statement, despite all these difficulties, it is still dedicated to serving its clients and other stakeholders. The business will keep providing sustainable and top-notch products to its consumers.
