Kohat Textile Mills Limited reported earnings per share of PKR 10.29 in FY24 against PKR 4.09 in FY23, an increase of 152%. Revenue in FY24 was recorded at PKR 7.96 Bn, up 34% from PKR 5.95 Bn in FY23.
The company saw its gross margin expand from 14% in FY23 to 15% in FY24. The company derives 20% of its revenue from cotton yarnbased sales and the remaining is from the production of man-made fiber-based yarns.
Management informed that the company has brought online its latest 2.1 MW solar plant project to now have a total of 5.1 MW of solar capacity online. Apart from this the company also has a gas based captive power plant and a standby connection from WAPDA.
Management was of the opinion that captive power plants will hopefully not get disconnected as the government is currently negotiating with the IMF in this regard to save gas distribution companies from PKR 400 Bn losses. The company expects to sustain its margins if captive power plant gas supply is not shut.
It has attributed its enhanced margins to the efforts of all its functions including marketing and procurement. Going forward, the management expects its cash constraints issues to be resolved this year.
Important Disclosures
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