Corporate Data
Board of Directors
Chairman
Shehzad Feerasta
Directors
Muhammad Rashid Zahir - Non-Executive
Zeeshan Feerasta - Non-Executive
Shahid Hameed - Independent Non-Executive
Chief Executive O cer
Nooruddin FeerastaAmyna Feerasta - Non-Executive
Yaseen M. Sayani - Independent Non-Executive Abdul Hayee - Non-Executive
Audit Committee
Yaseen M. Sayani - Chairman Muhammad Rashid Zahir - Member
Zeeshan Feerasta - Member
Human Resource & Remuneration Committee
Shahid Hameed - ChairmanNooruddin Feerasta - Member
Zeeshan Feerasta - Member
Chief Financial O cer
Muhammad Ahsan Iqbal
Company Secretary
S. Ghulam Shabbir Gilani
Bankers
Askari Bank Limited | Bank Alfalah Limited |
Faysal Bank Limited | Habib Bank Limited |
Habib Metropolitan Bank Limited | MCB Bank Limited |
Meezan Bank Limited | Soneri Bank Limited |
The Bank of Punjab
Registered O ce
Auditors
RSM Avais Hyder Liaquat Nauman
Chartered Accountants
Rupali House, 241-242 Upper Mall Scheme, Anand Road, Lahore - 54000 PAKISTAN
Plant
30.2 Kilometer Lahore - Sheikhupura Road Sheikhupura - 39350 PAKISTAN
Rupali Polyester Limited
Directors' Review
We are pleased to present the Company's un-audited financial statements for the third quarter and nine months period ended, 31 March 2022.
Overview
We report with satisfaction, that the top and bottom lines of the Q3 and nine months period ended 31 March 2022, reflect positivity. The businesses' growth momentum that was seen in Q2 FY 2021-22 (October-December 2021) could not persist because of slowness in downstream industry, elevated inflation and unprecedented Pak Rupee depreciation in Q3. The dumping of Polyester Filament Yarn (PFY), pursuant to reduction in anti-dumping duties, impacted our sales, which remained under pressure during Q3 of FY 2021-22. The sales revenue in Q3 could not grow at same pace that was in half year ended 31 December 2021, because of market competition with low quality dumped PFY. The soaring raw material prices in Q3 hugely increased our cost of sales, due to which gross profit in this quarter is decreased, as compared to Q3 of FY 2020-21. Elevated global crude oil prices increased the domestic energy fuels. On a brighter note, Government cut fuel prices and electricity tariffs in early March to combat inflation domestically. However, this single factor could hardly off-set the pressures of other factors, like dumping of PFY that is destroying the domestic PFY industry. The State Bank of Pakistan has increased the mark-up rates, which will increase the finance cost.
Pakistan's economy is facing a three-pronged challenge, like soaring prices of essential commodities such as oil, gas and unusually high shipping charges which has increased freight of raw material imports.
China, Malaysia, Indonesia and Korea are continuously dumping PSF and PFY into Pakistani markets. This dumping is massively injuring the domestic industry and is a big hurdle in its growth and expansion. The numerous repeated petitions against the ADD by local traders and PYMA are handicapping the domestic PFY producers.
Raw Material Prices
The raw material prices have increased in Q3 of FY 2021-22. In March 2021, PTA price was US$ 730 per M. Ton, and has now increased to US$ 1,030 per M. Ton in March 2022. MEG price in March 2021 was US$ 750 per M. Ton which has now increased to US$ 770 per M. Ton in March 2022.
Financial Results
Sales revenue for nine months ended 31 March 2022 increased to Rs.7,991.54 million from Rs.5,609.29 million in the corresponding period of last year. Gross profit increased to Rs.1,028.28 million from Rs.758.62 million. The Company earned profit before tax of Rs.786.17 million as against Rs.502.60 million in nine months period ended 31 March 2021. Profit after tax remained Rs.954.28 million for the nine months ended 31 March 2022 as against Rs.348.03 million in the same period of the preceding year.
Sales revenue for Q3 of FY 2021-22 stood at Rs.2,732.34 million as against Rs.2,209.89 million in the same quarter of last year. Gross profit in Q3 decreased to Rs.336.94 million as compared to Rs.397.48 million in corresponding quarter last year. The Company earned profit before tax of Rs.268.54 million as against Rs.311.59 million in Q3 last year and profit after tax of Rs.222.28 million as against Rs.211.27 million in the same quarter last year.
In addition to the above-mentioned financials, our finance cost has come down in both periods under review as a result of huge repayments of short term bank borrowings.
Future Outlook
Further expansion and capital investment solely depends upon the strong industrial policies. The Government, should formulate effective long-term economic policies for protection of this industry. Not only does this industry contribute largely in the export value chain, but it also is an immense source of employment. The power and gas concessionary tariff should continue for industry at least for five years with revival of Regulatory Duty on imported PFY.
A Note of Gratitude
The Directors express their appreciation for the cooperation provided by the Ministries of Finance, Industries and Production, Commerce, Communication and Textile Industry. We would also like to convey our gratitude to the Federal Board of Revenue, Departments of Customs, Central Excise and Government of the Punjab for their cooperation. We appreciate the patronage and confidence placed in the Company by the Development Financial Institutions and Commercial Banks. We are thankful to our valued customers and expect growing business relationships with them. To our stakeholders, we are grateful for their faith in the Company. We value their trust and appreciate the continued hard work by the management and staff of the Company.
On behalf of the Board
Nooruddin Feerasta Chief Executive OfficerZeeshan Feerasta
Director
Lahore
25 April 2022
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Rupali Polyester Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 07:44:08 UTC.