Karachi November 1 2021: FEROZE 1888 profit after tax for the quarter has decreased by PKR 1,179 million i.e. by 73.0 percent in comparison with corresponding period of last year in spite of increase in the Company’s net sales revenue.
The net sales during the quarter has increased by PKR 1,295 million i.e. by 12.9 percent in comparison with corresponding quarter of the last year.
A L S O || R E A D
Telecard To Make Three Bullet TFC Payments If Raises PKR 250 Million From Supernet IPO: PSX
The major reason causing the profit to nose dive is the high cost of cotton and yarn vs the corresponding period last year and is going to impact further in coming months. Moreover, higher distribution cost owing to global supply chain challenges and uneven minimum wage hike also impacted the results significantly.
In comparison, the price hike in the international cotton market has pushed the prices upwards locally also – exceeding PKR 14,000/maund. Cotton imports as compared to last year have increased by 36.9 percent in quantity and 73.3 percent in US dollar terms during July & August 2021.
A L S O || R E A D
Amreli Steel Profitability Jump By 6.3 Times During First Quarter FY22: PSX
The overall situation both locally and globally is very much uncertain as the economies reopen after the pandemic. We at Feroze1888, are making all the efforts to keep the operational and administrative costs under control. Whereas, the continued rise in raw material and other direct material prices, volatility of Pak rupee to US dollar parity and delay in announcement of new textile policy continue to be the challenges faced by the industry during the current fiscal year. The Company being an exporter is also closely monitoring the economic situation in the importing countries and the customers in particular to act proactively in these unusual circumstances.
However, the momentum on export front remains stable – the overall exports during July – August, 2021 reached to USD 4.6 billion against USD 3.6 billion during the corresponding period of last year showing an increase of 27.9 percent. Moreover, the textile exports registered growth of 29.0 percent to USD 2.9 billion in the first two months (July and August) of 2021-22 as compared with USD 2.3 billion in the corresponding period of the preceding year. Specifically, towel exports went up by 20.7 percent & 14.6 percent whereas cotton yarn by 68.0 percent & 15.2 percent in terms of value and quantity respectively.
