Karachi September 20 2021: Baluchistan Wheels Limted (BWCL) earned profitability of PKR 100.68 million in Fiscal year 2021 as compared to PKR 18.92 million in the previous year, posted an increase of 5.3 times, as per data shared at Pakistan Stock Exchange.
During the year 2020-2021 the company had overall consolidated revenue of PKR 1,574.82 million as compared to PKR 912.82 million which is 73% higher than the previous year.
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The car wheels sale was PKR 667.69 million as compared to PKR 539.05 million in the previous year increased by 24%. The Truck / Bus wheels sale was PKR 171.34 million as compared to PKR 73.68 million in the previous year increased by 133%. Similarly, the Tractor wheels sale was also increased to PKR 644.43 million as compared to PKR 264.07 million in the previous year increased by 144%.
Overall at the National Level the production of Passenger Cars increased by 57% with the total production of 151,182 units in 2021 as compared to 96,455 units in the year 2020. 30,215 LCV’s, Vans and Jeeps were produced in 2021 as against 15,507 units in the year 2020, increased by 95%. 4,347 Trucks / Buses were produced in 2021 as against production of 3,647 Trucks / Buses in the year 2020, showing increase of 19% over the corresponding last year. Similarly, the Tractors production has also increased to 50,920 units in the year 2021 as compared to 32,727 tractors in the year 2020 increased by 56%.
The entire Auto Sector gave an improved performance during the Financial Year (FY) 2021 and is now on the path of recovery as the demand for Autos increases owing to low interest rates and pickup in economic activity. The Car assemblers had enjoyed a big sales recovery of 57% in FY 2021 owing to cheaper Auto financing by the banks due to low interest rates. The FY 2021 also closed on positive note for Tractor markets. The increase in Tractor sales for a positive agriculture indicator amid huge drop in Cotton Output.
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The increase in turnover of 73% is due to the increase in sales of all segments i.e. Cars, Truck / Bus and Tractor wheel which increased by 24%, 133% &144% respectively. The Cost of Sales was PKR 1,331.75 million during the year under review as against Rs.795.40 million. The gross profit increased by 107% to PKR 243.06 million against PKR 117.41 million of last year. Similarly, the company earned profit after taxation of PKR 100.68 million as compared to PKR 18.92 million in the previous year, increased by 432%.
Low interest rates, improvement in macro economic conditions, higher foreign remittances, Roshan Digital Account (RDA) inflows and revival of economic activity have improved the purchasing power of consumers and which have played a major role in attracting the new vehicle buyers and which consequently increased our sales as well as gross profit margins and ultimately enhanced the net profit for the year.
