Key Takeaways:
• Increasing gross margins are being utilized to reduce long-term debt.
• Successfully commissioned an ASU plant with a capacity of 270 TPD.
• Launched new products in the medical equipment segment.
Pakistan Oxygen Limited reported earnings per share of PKR 1.83 in FY23 against an earnings per share of PKR 5.32 in FY22. Furthermore, in 9MCY24 the company reported earnings per share of PKR 5.25 against PKR 0.49 in SPLY.
The company has successfully commissioned the largest ASU plant with a capacity of 270 TPD, along with an 11 TPS electrode facility at Port Qasim.
They have acquired the ASU plant from Linde AG, which offers high efficiency, positively impacting the company’s profitability. In the welding business, the company is focusing on Tier 1 electrodes, a segment where they enjoy higher profit margins. In medical engineering services, the company has delivered several projects this year, the most notable being the commissioning of a medical gas pipeline system for the 600-bed Indus Hospital. In recent quarters, the company has achieved higher margins, which are being used to pay off long-term debt and enhance balance sheet stability. For medical gases, the company anticipates stable demand from the healthcare and beverage industries.
Company is Currently operating at 70% capacity utilization; they had earlier acquired machinery to meet growing demand. Additionally, they are the sole producer of hydrogen in the market, supplying primarily to the textile sector.
New products in medical engineering and welding generated revenue of 130 million. In the medical equipment segment, the company has launched bedhead units and initiated the import substitution of operating theatre equipment. They have introduced ten product ranges to the market, receiving positive response. Moving forward this segment is a key focus area, given its high value and strong profit margins.
Important Disclosures
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