GHGL’s tableware to appear online in 2022

December 22, 2021 (MLN): Ghani Glass Limited (PSX: GHGL), one of the leading manufacturers of glass containers and float glass, is all set to diversify into the tableware segment at the Hattar plant, KPK, and the tableware capacity is expected to appear online with an estimated timeline of six to eight months, the management of the company informed the while holding a corporate briefing session on Tuesday.

The aforesaid project of the tableware segment will be financed through the internal resources of the company.

Apprising investors of the financial performance of the company during FY21, the management underlined that the net sales of the company increased 25.5%YoY due to significant growth in the float and container segment. Wherein, float glass sales doubled due to capacity availability, meanwhile, the container segment saw increased demand from the pharma and beverages industry.

Moreover, gross margins of the Company also improved YoY by 7ppts to 22.6%, despite the rising cost of fuel and power.

GHGL is primarily engaged in the manufacture of float glass and glass containers. The Company has 7 glass furnaces with 1,570MT per day capacity and produces over 2Bn bottles annually.

GHGL has plants in 3 locations which include Hattar, KPK, Karachi, and Sheikhupura. Hattar plant, GGL 1, currently has 2 modern furnaces with 255TPD capacity, GGL-2 Karachi plant has 3 modern furnaces with 315TPD capacity and GGL-3 Sheikhupura has 2 furnaces with 1,000TPD capacity, as per the briefing takeaways covered by Taurus Securities Limited.

The company holds 95%, 96%, and 75% local market share in Pharma, food & beverages, and float glass segment. In addition, the company also exports to over 26 countries across the globe. The export sales accounted for 7.8% of the total sales.

The management also informed that the energy requirement of the Company is 10MMBTU for 1MT of glass. Wherein, the north plants are RLNG based and the Karachi plant has access to domestic gas supply.

As per the report, the management of the company intends to keep a consistent dividend payout policy.

Currently, the stocks of the company are trading at Rs42.40 per share. 

Copyright Mettis Link News