In 1QFY24, Din Textile Mills Limited (DINT) reported a net loss of PKR 782.69 million (LPS: PKR 14.92), reflecting a decline from the net income of PKR 379.08 million (EPS: PKR 7.23) in the corresponding period last year.
Despite the setback, the company experienced substantial revenue growth, reaching PKR 10.75 billion in 1QFY24, marking an impressive 36% YoY increase from the PKR 7.91 billion reported last year.
Cost of sales rose by 55% YoY to PKR 10.21 billion in 1QFY24. Administrative expenses increased by 5% YoY to PKR 98.34 million, whereas distribution expenses decreased by 25% YoY to PKR 107.82 million in the same period.
The finance cost of the company increased by 81% YoY to PKR 1.03 billion in 1QFY24 from PKR 566.97 million in SPLY. Gross profit recorded a substantial decrease of 59% YoY, reaching PKR 543.62 million in 1QFY24.
In FY23, the company achieved its highest revenue, up 3% YoY, reaching PKR 32.31 billion compared to PKR 31.35 billion in SPLY. DINT incurred a net loss of PKR 867.52 million (LPS: PKR 16.53) in FY23 against net income of PKR 3.44 billion in SPLY.
Total assets and total Capex witnessed an increase of 35% YoY and 223% YoY to PKR 37.99 billion and PKR 4.01 billion, respectively, in FY23.
The long-term debt of the Company reached PKR 8.24 billion in FY23 compared to PKR 7.05 billion in SPLY. Debt to total assets and debt to equity were reported at 32.75% and 260.46%, respectively, in SPLY.
Donations registered a tremendous increase of 804% YoY, reaching PKR 12.15 million compared to PKR 1.51 million in SPLY.
The wealth generation breakup is as follows: Material & Factory Cost (81%), Administrative & Other expenses (1%), Broker’s Commission (1%), Value Added (16%), and distribution (1%).
Similarly, the wealth distribution breakup is as follows: Mark up paid on borrowed fund (44%), Salaries & Benefits (26%), decline in Profit Retained (13%), and Depreciation (14%) in FY23.
The management reported a decrease in profit margins to 1.93% and a decline in ROE to 6.69% during the said period.
DINT operates four spinning units with 134,928 spindles, one dyeing unit with a capacity of 13 tons per day, and one weaving unit with 144 air jet looms.
Going forward, the management anticipates that lower international prices will offset the increase in exports. Likewise, the high-quality bumper cotton crop this year is expected to improve margins. The management indicated a shift in focus towards debt retirement instead of pursuing further expansion.
Important Disclosures
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