Fazal Cloth Mills Limited has reported its financial results for the fiscal year ended June 30, 2024. The Board of Directors met on September 30, 2024, to review and approve the results. Notably, the company has declared no dividends or bonus shares for the year, with no rights shares issued or other entitlements announced.
The company’s revenue from contracts with customers reached Rs. 97,160,875,498 for the year 2024, showing significant growth from Rs. 77,696,979,894 in the previous year. However, the cost of sales also increased to Rs. 86,143,904,773, resulting in a gross profit of Rs. 11,016,970,725, which is an improvement compared to the prior year’s Rs. 10,086,103,490.
Key financial highlights for 2024 include:
- Selling and distribution expenses amounted to Rs. 559,628,231, up from Rs. 497,083,655 in 2023.
- Administrative expenses increased to Rs. 780,681,536, compared to Rs. 615,746,677 last year.
- The company saw a substantial boost in other income, recording Rs. 1,665,202,999, up from Rs. 373,827,473 in 2023.
- Other expenses were lower this year at Rs. 178,546,961, compared to Rs. 2,677,915,683 in the previous year.
- Profit from operations stood at Rs. 11,163,316,996, compared to Rs. 6,669,184,948 in 2023.
Despite these improvements, Fazal Cloth Mills reported a finance cost of Rs. 8,337,427,848, higher than last year’s Rs. 5,074,371,862. After accounting for levies and income tax, the profit after taxation for 2024 was Rs. 1,785,287,555, compared to Rs. 586,094,719 in 2023. This marked a strong recovery in earnings, leading to an earnings per share (EPS) of Rs. 59.51, up from Rs. 19.54 the previous year.
The company’s solid performance reflects a strategic focus on revenue growth while controlling expenses. The improvement in gross profit, despite higher costs, and a significant boost in other income have contributed to this year’s positive financial results.
However, the increase in finance costs remains a concern and highlights the importance of managing debt and financing structures moving forward.