LAHORE: The Kohinoor Textile Mills has posted Rs1.2 billion profits for the second quarter of fiscal year 2015-16 with a massive growth of 32 per cent.
This was accompanied by a dividend of Rs1.5/share and 15% bonus share issue. KTML’s consolidated revenues increased 11% YoY to Rs10.1b. Experts believe the company’s strategy to focus on value-added products bore fruit for the company. Moreover, Maple Leaf Cement, a subsidiary of KTML, enjoyed higher local cement dispatches and margins which added to KTML’s top-line. The company was able to manage its cost of sales effectively as they increased by a mere 3% YoY to Rs6.6b. Management’s strategy to procure cotton in short intervals enabled it to manage inventory amid weakness in cotton prices.
Moreover, declining energy costs and fall in international coal prices kept variable costs in check. KTML, therefore, reported gross profits of Rs3.5bn (up 29% YoY) while its gross margins improved by 4.9ppts to 34.7% in the outgoing quarter. Margins were further supported by the improvement in MLCF’s margins.
