KARACHI: Gul Ahmed Textile Mills Limited has reported a remarkable profit growth of 64.35 percent after tax for the quarter ended September 30, 2020.
According to the financial results posted on the Pakistan Stock Exchange (PSX) on Tuesday, Gul Ahmed declared a net profit of Rs599 million for the quarter from July to September 2020, compared to Rs364.59 million in the same period last year. This significant increase in profitability underscores the company’s robust performance amid challenging economic conditions.
Earnings per share (EPS) of Gul Ahmed surged to Rs1.4, up from Re0.85 in the corresponding quarter of the previous year. This increase in EPS highlights the company’s improved profitability and its ability to deliver greater returns to its shareholders.
Sales of Gul Ahmed witnessed substantial growth, rising by 38 percent to Rs19.65 billion for the quarter ended September 30, 2020, compared to Rs14.2 billion in the same quarter last year. This impressive sales growth reflects the company’s strong market position and effective business strategies.
However, the cost of sales also increased significantly, rising by 43 percent to Rs16.13 billion for the quarter under review, compared to Rs11.29 billion for the quarter ended September 30, 2019. This increase in the cost of sales is attributed to higher raw material costs and other operational expenses.
Despite the rise in the cost of sales, the distribution cost of Gul Ahmed remained relatively stable at Rs1.1 billion, compared to Rs1.08 billion in the comparative quarters. This stability indicates efficient distribution management by the company.
In contrast, the administrative cost of the company saw a sharp decline, falling by 14.47 percent to Rs672.7 million for the quarter ended September 30, 2020, from Rs785 million in the corresponding quarter last year. This reduction in administrative costs reflects the company’s efforts to streamline operations and enhance efficiency.
On the other hand, the company’s tax payment registered a significant increase of 46 percent, amounting to Rs241.42 million for the quarter under review, compared to Rs165.15 million in the same quarter last year. This rise in tax payments corresponds with the higher profitability achieved during the period.
Overall, Gul Ahmed Textile Mills Limited’s financial results for the quarter demonstrate strong operational performance and strategic cost management, resulting in substantial profit growth. The company’s ability to enhance sales, control distribution costs, and reduce administrative expenses, while navigating a challenging economic landscape, underscores its resilience and strategic acumen.