Insight into Kohinoor Spinning Mills Limited 2020 Corporate Briefing
Gain valuable insights into Kohinoor Spinning Mills Limited through their 2020 corporate briefing session, covering details such as company information, major customers, operational performance, challenges faced, and future outlook. Understand the impact of the Covid-19 pandemic on the textile industry, the company's production statistics, and more. Explore how the company navigated through adversities while striving for sustainable profitability.
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Presentation Transcript
KOHINOOR SPINNING MILLS LIMITED Corporate Briefing Session For the Year Ended June 30, 2020
Presentation Outlines Company Information 1 Major Customers 2 Operating Performance 3 Future Outlook / Challenges 4 Question/Answer Session 5
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 2nd and 3rd unit along with enhancing production capacity gradually up to 78,492 spindles. The Company supplied to its customers varied type of Yarn, including 30PV, 36PV, 26PV, 40PC, 24PVC 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 Due to outbreak of Covid-19 pandemic during the year ended June 30, 2020, our industry faced lock down which adversely impacted the economic and industrial performance. Recession in local market has incurred huge financial losses to the industry. Textile industry was already facing various challenges; e.g. high cost to do business, un-consistent Government policies to provide energy at affordable prices, elimination of zero rated status etc. in addition to which Covid-19 caused to be detrimental for business concern. To reinforce cash flow the directors have provided loan of Rs. 33.5 million during the current year and have commitment to provide their continuous support to bring back the Company on the path of sustainable profitability.
Operational Performance Spinning Production (Kgs) 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - 2016 2017 2018 2019 2020 Actual Production Per Annum
Operational Performance No. of Employees 2500 2000 1500 1000 500 0 2016 2017 2018 2019 2020 Number of Employees
Operational Performance Share Price (Rs.) 6.00 5.00 4.00 3.00 2.00 1.00 - 2016 2017 2018 2019 2020 To-date Share Price Over the Years
KOHINOOR SPINNING MILLS LIMITED : 2020 VS 2019 2020 2019 Operating Loss (Rs in Million) Sales Revenue (Rs in Million) (93) 4,260 (208) 1,663 Loss per Share (Rs/Share) Loss After Tax (Rs in Million) (1.57) (339) (1.14) (245) Equity Return on Equity (%) (Rs in Million) (477) (71) (723) (34)
Financial Performance of Five Years 2020 2019 2018 2017 2016 Rupees in "000" Sales Cost of Sales Gross Profit (Loss) Operating Loss Loss before Tax Loss after Tax 1,662,982 (1,797,828) (134,846) (207,908) (220,097) (245,042) 4,260,539 (4,258,906) (93,181) (306,496) (339,403) 3,070,194 (3,235,487) (165,293) (250,733) (451,816) (414,618) 2,063,046 (2,443,291) (380,245) (475,405) (632,518) (681,989) 4,139,298 (4,158,348) (19,050) (223,570) (424,632) (466,025) 1,633 Paid up Capital Equity 1,078,571 (722,763) 553,173 2,994,447 1,691,583 1,133,274 1,078,571 (477,241) 534,743 2,842,358 1,778,065 1,121,795 1,078,571 (106,474) 553,987 2,570,508 1,860,731 1,157,290 650,000 (293,100) 1,285,144 2,191,151 1,923,982 1,259,213 650,000 389,750 1,093,728 1,985,387 2,059,142 1,409,723 Non-Current Liabilties Current Liabilites Non-Current Assets Current Assets Loss per Share (Rs.) (1.14) (3.35) 0.38 141% (1.57) (2.21) 0.39 124% (2.13) (0.49) 0.45 105% (5.25) (2.25) 0.57 112% (3.58) 3.00 0.71 86% Break-up value per share (Rs.) Current Ratio Gearing Ratio
Future Outlook On-going second wave Covid-19 pandemic is crucial to the industry, if the government could be able to control no. of covid cases by taking strict measures and able to avoid any further shut down, this would lead to positive financial results for the upcoming periods. Further if current economic conditions becomes favorable the management is planning for a major BMR plan in up-coming period after which the Company will be proved to be a BLUE CHIP stock for potential investors.
Future Challenges COVID-19 Pandemic Threat Inconsistency in Electricity and Gas Rates Repayment of Loans Effect of Inflation on Inputs
QUESTION & ANSWER SESSION
