Ellcot Spinning Mills Limited reported earnings per share of PKR 13.97 in FY24 against earning per share of PKR 38.33 in FY23, a decrease of 64%. Furthermore, in 1QFY25 the company has reported earning per share of PKR 7.70 against earning per share of PKR 1.88 in SPLY.
Total revenue in FY24 reached PKR 15.5 Bn against PKR 12.2 Bn in FY23, an increase of 26.93%. The company saw its gross margin drop from 8.52% in FY23 to 6.75% in FY24.
Company announced the dividend of PKR 5.00 per share in FY24 as of PKR 6.00 per share in FY23. Ellcot Spinning Mills operates 79,200 spindles equipped with advanced technology for producing high-quality yarn using 100% synthetic cotton blends.
The company’s production capacity in making yarn is 17,000 tonnes per annum. The company identified key challenges, including low yarn demand, volatile cotton prices, and high energy costs, which significantly raise production expenses. Local cotton crop failures have forced the company to rely heavily on imports. While international cotton prices have dipped by 15-16% year-over-year. However, company reported that they have made timely purchases at right times. Looking ahead, the company anticipates a potential decline in cotton crop output due to climate change.
To address this, Ellcot is exploring opportunities to capitalize on lower international cotton prices by maximizing its procurement
Important Disclosures
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