KTML: Bottom line shrinks by 33% YoY in 1HFY22

February 24, 2022 (MLN): The profitability of Kohinoor Textile Mills (KTML) has declined by 33.6% YoY to stand at Rs3.24 billion for the half-year ended on December 31, 2022, compared to Rs4.88bn earned in 1HFY21, the company’s filing on PSX showed on Thursday.

In conjunction with financial results, the company offered a final cash dividend for the quarter ended December 31, 2021, at Re1 per share i.e., 10%.

The substantial drop in profitability is attributed to the notable decline in other income.

During the period under review, the topline went up by around 33% YoY to Rs40.59bn on an account of higher growth in sales volume. Despite a 20% YoY increase in the cost of sales, this substantial increase in topline expanded the gross margin from 21% to 29% during FY22.

On the cost side, the distribution cost jumped by 60% YoY to stand at Rs1.4bn while administrative expenses moved up 6% YoY to stand at Rs866 million. In addition, the finance cost of the company has inched up by 6.2% YoY owing to monetary tightening by SBP.

Meanwhile, the other income decreased substantially by around 91% YoY to peg at Rs255mn in 1HFY22.

However, the company booked a tax expense of Rs1.46bn, up by 34% YoY during the review period.

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