Corporate results: Gul Ahmed’s profit down by 51%

Posts EPS of Rs2.65, earnings amount to Rs605m in fiscal year

KARACHI: Gul Ahmed, one of the largest integrated textile mills in the country, posted net earnings of Rs605 million in the year that ended on June 30, down by a significant 51% compared to Rs1.23 billion last year.

Being an integrated textile mill, Gul Ahmed produces finished products from yarn and directly retails them with its own store chain ‘Ideas’ that was launched in 2003.

In its latest results, Gul Ahmed posted earnings per share (EPS) of Rs2.65 from an EPS of Rs5.40 in the period under review. The result also accompanied a final cash dividend of Rs1.5 per share.

BMA Capital on Wednesday reported that the decrease in profitability is attributable to a year-on-year increase in other expenses and finance cost that jumped 21.6% and 14.6%, respectively.



The company reported gross profit of Rs6.1 billion in fiscal year 2015 (FY15), an increase of 2% from the previous year.

In the fourth quarter of fiscal year 2015 (4QFY15), the company posted earnings of Rs154 million or an EPS of Rs0.68 compared to earnings of Rs198 million or an EPS of Rs0.87 in third quarter of fiscal year 2015 (3QFY15).

This shows a decline of 22% quarter on quarter which is attributable to a decline of 2% in sales and an increase of 37% in operating expenses. Gul Ahmed heavily focuses on exports as it ships nearly 70% of its production overseas every year, but the company feels that it has lot more to gain locally.

Published in The Express Tribune, September 24^th, 2015.

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