Overview of Kohinoor Spinning Mills Limited for Year Ending June 30, 2019
Kohinoor Spinning Mills Limited is a textile company incorporated in 1970, based in Lahore, Pakistan. The company operates multiple units and is listed on the Pakistan Stock Exchange. Despite facing challenges such as stiff competition and cost factors, the company has strived to maintain operational performance and has a diverse customer base. The presentation outlines company information, major customers, operational performance, and future outlook. Explore key details about the company's history, production capacity, and performance metrics.
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Presentation Transcript
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 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 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) 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - 2015 2016 2017 2018 2019 Actual Production Per Annum
Operational Performance No. of Employees 3000 2500 2000 1500 1000 500 0 2015 2016 2017 2018 2019 Number of Employees
Operational Performance Share Price (Rs.) 12.00 10.00 8.00 6.00 4.00 2.00 - 2015 2016 2017 2018 2019 To-date Share Price Over the Years
KOHINOOR SPINNING MILLS LIMITED : 2019 VS 2018 2019 2018 Operating Loss (Rs in Million) Sales Revenue (Rs in Million) (251) 3,070 (93) 4,260 Loss per Share (Rs/Share) Loss After Tax (Rs in Million) (2.13) (415) (1.57) (339) Equity Return on Equity (%) (Rs in Million) (106) (391) (477) (71)
Financial Performance of Five Years 2019 2018 2017 2016 2015 Rupees in "000" Sales Cost of Sales Gross Profit (Loss) Operating Loss Loss before Tax Loss after Tax 4,260,539 (4,258,906) 1,633 (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) 6,051,526 (5,719,869) 331,657 56,140 (229,168) (289,683) Paid up Capital Equity 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 1,409,723 650,000 842,304 1,214,903 2,013,340 2,117,364 1,953,183 Non-Current Liabilties Current Liabilites Non-Current Assets Current Assets Loss per Share (Rs.) (1.57) (2.21) 0.40 124% (2.13) (0.49) 0.45 105% (5.25) (2.25) 0.57 112% (3.58) 3.00 0.71 86% (2.23) 6.48 0.96 76% Break-up value per share (Rs.) Current Ratio Gearing Ratio
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
QUESTION & ANSWER SESSION
