KOHINOOR SPINNING MILLS LIMITED Corporate Briefing Session For
KOHINOOR SPINNING MILLS LIMITED Corporate Briefing Session For the Year Ended June 30, 2019
Presentation Outlines Company Information 1 Major Customers 2 Operating Performance 3 Future Outlook / Challenges 4 5 Question/Answer Session
Company Information • Incorporated on July 23, 1970 • Registered Office: 7/1, E-3, Main Boulevard, Gulberg III, Lahore • Mills: (i) Unit # 1 & 2 : Aminabad, 8 -Km Pindi Road, Chakwal (ii) Unit # 3 : 8 -Km, Bhaun Road, Chakwal • Listed on Pakistan Stock Exchange on 1970 • Company Symbol: KOSM • Member of All Pakistan Textile Mills Association and Lahore Chamber of Commerce • Auditors : M/s. Nasir Javaid Maqsood Imran & Company, Chartered Accountants • Share Registrar : M/s. Corplink (Pvt) Limited
Company Information The Company has started its operations with 12, 400 spindles in Unit # 1 and subsequently established 2 nd and 3 rd unit along with enhancing production capacity gradually up to 78, 492 spindles. The Company supplied to its customers varied type of Yarn, including 30 PV, 36 PV, 26 PV, 40 PC, 24 PVC etc.
Major Customers • Best Exports (Private) Limited • Zaman Textile Mills (Private) Limited • Ayesha Spinning Mills Limited • AM Enterprises • Ahmed Zubair Textile Mills • Al-Karam Fabrics • Bismillah Textiles Limited • Mahmood Textile Mills Limited • FM Textile
Operational Performance The Company has faced severe depression from last five years mainly due to stiff competition, uncompetitive exports, shortage of energy, excessive energy cost, inflated raw material prices, drastic devaluation of Pak. Rupee, huge mark-up cost and strained cash flow position. In this arduous period, the directors came forward and provide support to stabilize liquidity position. In 2017, shares have been issued to the directors against their long term loan of Rs. 428 million to enhance capital base of the Company. The directors are committed to provide eternal support to bring back the Company on the path of sustainable profitability.
Operational Performance Spinning Production (Kgs) 35 000 30 000 25 000 20 000 15 000 10 000 5 000 2015 2016 2017 2018 Actual Production Per Annum 2019
Operational Performance No. of Employees 3000 2500 2000 1500 1000 500 0 2015 2016 2017 2018 Number of Employees 2019
Operational Performance Share Price (Rs. ) 12, 00 10, 00 8, 00 6, 00 4, 00 2015 2016 2017 2018 2019 Share Price Over the Years To-date
KOHINOOR SPINNING MILLS LIMITED : 2019 VS 2018 2019 2018 Operating Loss (Rs in Million) Sales Revenue (Rs in Million) 3, 070 4, 260 Loss After Tax (Rs in Million) (477) (93) Loss per Share (Rs/Share) (415) (339) Equity (Rs in Million) (251) (106) (2. 13) (1. 57) Return on Equity (%) (71) (391)
Financial Performance of Five Years
Future Outlook Elimination of Textile Sector from Zero Rates Regime has materially effected the revenue, since the un-register persons showed their reluctance to come into TAX NET. However the Govt. should take permanent steps in respect of mandatory condition of CNIC provision by Un-Registered Person. The management is considering to resuscitate exports, further if current economic conditions remains favorable, the management is planning for a major BMR plan in up-coming period.
Future Challenges Implementation of GST on Textile Industry along with CNIC requirement for un-registered person Inconsistency in Electricity and Gas Rates Drastic upward movement in KIBOR Rate Effect of Inflation on Inputs Repayment of Loans
Thank You
- Slides: 15