abn mortgage, accept credit cards online, adjustable rate mortgages, affordable health insurance, american family insurance, american life insurance, american mortgage, auto insurance quote college loan consolidation car insurance quote cheap car insurance auto insurance quotes chase credit cards college loans best mortgage rates consolidation loan car insurances aut, auto loan, auto loan for bad credit, bad credit, bad credit car financing, bad credit car loans, best credit card, best credit card deal, best credit card rate, burial insurance, commercial mortgage loan, Credit
Kohinoor Mills Limited (KML) is one of the most evolving and profitable textile organizations in Pakistan. Incorporated in 1987 as a small weaving mill, today Kohinoor Mills has an annual turnover of over Rs8 billion, and employs over 1,400 employees. It largely undertakes three major businesses; weaving, dyeing and power generation. Its products range from greige fabric to processed fabric.
The company features a striking sales mix with exports constituting 86% of total sales while holding a commendable market share 0.56 percent of industry exports. It intends to bring together outstanding knowledge of customer needs with leading edge technology platforms to provide superior value to its customers and stakeholders.
Performance for 1H FY14
The year 2013 was marred by uncertainty as mixed trends on the macro-economic front allowed the textile sector to witness a mediocre growth at best. For Kohinoor Mills, the year brought around a contraction in top line revenues as the dismal second half of the year weighed on the company’s operations.
During the half-year ended December 31, 2013, KML achieved sales of Rs.4,012 million compared to sales of Rs.4,139 million for the corresponding period of previous financial year 2012-13, a decline of 4.9 percent year on year, respectively. This is due to heavy competition from China and other emerging markets which continue to put downward pressure on the sales and margins.
Stiff management control of cost of sales (decline of 3.7% YoY) allowed for better gross margin of 16.4 percent. Operating profit margin was at 8.2 percent compared to 8.3 percent in the subsequent period of last year which is significant, as a result of optimal capacity utilization and better fixed cost coverage.
During the period under review, the company recorded a net profit of Rs123 million, compared to net profit of Rs898 million, down by 86.3 percent year on year in the corresponding period owing to escalating raw material (yarn) prices and severe electricity and gas load shedding.
The biggest difference to the bottom line was made by insignificant contribution from other income. KML had recorded other income over Rs1 billion during 1H FY13, which was more of a one-off event. The other income came back to normalcy during the period under review, hence the dip in bottom line.
Attrition in fixed asset turnover in 1H FY2014 of 1.12 and total asset turnover of 0.65 is attributed to underutilization of the capacities due to increased power shutdowns.
The earning per share was Rs2.41 compared to Rs17.64 for the same period in previous financial year. Moreover, KML, upon finalization of its debt restructuring, recorded Rs824 million as one time gain on recognition of financial liabilities at fair value under IAS 39.
Keeping in view a difficult macro-economic scenario, crippling power and gas shortages, rising fuel prices and increasing competition in textiles from China, India and other emerging markets and to reap advantages accruing from grant of GSP-plus status to Pakistan by the EU, KML has formulated a comprehensive marketing-oriented strategy.
For improved revenues and increased margins, the company is thoroughly focusing on marketing efforts with an agenda for market development and penetration with product development in niche products for famous brands and technical textiles.
For cost-savings, KML is ensuring better supply-chain management of raw materials and increased reliance on alternate fuels for power-generation. Recently, the installation of bio-fuel based boiler was completed during the half-year under review. Therefore, the management is assertive that the company shall be able to increase its performance.