Gul Ahmed Textile Mill Analysis

Income Statement 2019-2024

FiscalB4:L56 year is July- 2023 2022 2021 2020 2019
June. All values PKR Millions.

Sales/Revenue 138,9 121,8 89,3 55,9 59,1

27 13 24 33 90
Cost of Goods Sold (COGS) 112,5 96,69 73,4 47,3 47,0
incl. D&A 03 1 85 50 91
Gross Income 26,42 25,12 15,8 8,58 12,0
3 2 39 3 98
SG&A Expense 12,54 9,980 7,64 6,76 7,55
2 9 2 6
Other Operating Expense 309 140 239 106 127

EBIT 13,57 - - 1,71 4,41

3 4 6
Unusual Expense -106 -214 -330 -112 -

Interest Expense 6,905 3,580 2,07 1,89 1,47

3 0 0
Pretax Income 6,996 11,69 6,19 -223 4,03
7 2 1
Income Tax 2,099 1,852 1,02 403 400
8
Net Income 4,897 9,845 5,16 -626 3,63
4 0

1.Horizontal Analysis
Item 201 202 202 2022 2023 %
9 0 1 Chan
ge
(201
9-
2023
)
Sales/ 59,1 55,9 89,3 121, 138, 134.
Revenue 90 33 24 813 927 70%
COGS 47,0 47,3 73,4 96,6 112, 138.
incl. D&A 91 50 85 91 503 90%
Gross 12,0 8,58 15,8 25,1 26,4 118.
Income 98 3 39 22 23 40%
SG&A 7,55 6,76 7,64 9,98 12,5 66.0
Expense 6 2 9 0 42 0%
Other 127 106 239 140 309 143.
Operatin 30%
g
Expense
EBIT 4,41 1,71 - - 13,5 N/A
6 4 73
Unusual - - - -214 -106 N/A
Expense 112 330
Interest 1,47 1,89 2,07 3,58 6,90 369.
Expense 0 0 3 0 5 70%
Pretax 4,03 - 6,19 11,6 6,99 73.5
Income 1 223 2 97 6 0%
Income 400 403 1,02 1,85 2,09 424.
Tax 8 2 9 80%
Net 3,63 - 5,16 9,84 4,89 35.0
Income 0 626 4 5 7 0%

2.Vertical Analysis
Item 2019 2020 2021 2022 2023
Sales/Revenue 100.0 100.0 100.0 100.0 100.0
% % % % %
COGS incl. D&A 79.5 84.7 82.3 79.4 81.0
% % % % %
Gross Income 20.4 15.3 17.7 20.6 19.0
% % % % %
SG&A Expense 12.8 12.1 8.6% 8.2% 9.0%
% %
Other Operating 0.2% 0.2% 0.3% 0.1% 0.2%
Expense
EBIT 7.5% 3.1% N/A N/A 9.8%
Unusual Expense 0.0% -0.2% -0.4% -0.2% -0.1%
Interest Expense 2.5% 3.4% 2.3% 2.9% 5.0%
Pretax Income 6.8% -0.4% 6.9% 9.6% 5.0%
Income Tax 0.7% 0.7% 1.2% 1.5% 1.5%
Net Income 6.1% -1.1% 5.8% 8.1% 3.5%
Analysis Summary
Revenue and Cost Structure
 Sales/Revenue grew by 134.7% from 2019 to 2023, indicating strong
demand or expansion.
 COGS increased by 138.9%, consistently consuming around 80% of
revenue, limiting gross profit margins.
Profitability
 Gross Income saw a 118.4% increase, but as a percentage of
revenue, it remained fairly consistent, showing minimal change in cost
efficiency.
 Net Income fluctuated, dropping in 2020 to a net loss but recovering
in subsequent years. By 2023, it represented 3.5% of revenue, lower
than 2019's 6.1%, indicating profitability challenges.
Expenses
 SG&A Expenses were managed well as a percentage of sales,
decreasing from 12.8% in 2019 to 9.0% in 2023, suggesting
operational efficiencies.
 Interest Expense saw a sharp increase, especially by 2023, where it
accounted for 5.0% of revenue, indicating higher financing costs.
Financial Health
 Pretax Income remained volatile, reflecting varying
operational and financing costs.
 Income Tax Expense increased significantly, yet stayed
consistent as a percentage of pretax income.
Gul Ahmed Textile Mills
Balance Sheet Analysis (2019-2023)
Category 2023 2022 2021 2020 2019
Cash & 1,929 2,810 1,019 822 678
Short Term
Investments
Cash Only 1,929 2,810 1,019 822 678
Total 20,546 23,737 15,818 7,436 8,424
Accounts
Receivable
Accounts 16,622 20,184 11,528 5,151 6,866
Receivable
s, Net
Accounts 17,079 20,521 11,813 5,441 7,187
Receivable
s, Gross
Bad -457 -337 -284 -290 -321
Debt/Doub
tful
Accounts
Other 3,925 3,553 4,290 2,285 1,557
Receivables
Inventories 51,004 46,131 36,044 29,672 24,993
Finished 21,358 21,509 20,791 17,645 13,334
Goods
Work in 6,250 5,398 760 566 346
Progress
Raw 19,919 15,908 10,044 8,442 8,503
Materials
Progress 3,477 3,315 4,449 3,019 2,809
Payments
& Other
Other 1,228 294 171 2,264 1,663
Current
Assets
Prepaid 273 290 168 270 321
Expenses
Miscellane 956 4 3 1,994 1,342
ous
Current
Assets
Total 74,707 72,972 53,051 40,194 35,757
Current
Assets
Net 57,610 53,208 45,793 26,276 19,010
Property,
Plant &
Equipment
Property, 80,745 72,617 62,385 40,624 32,059
Plant &
Equipment
- Gross
Buildings - - 11,593 7,699 6,236
Land & 9,543 9,543 9,543 - -
Improvem
ents
Machinery 43,845 33,405 29,599 25,836 22,766
&
Equipment
Constructi 2,410 9,428 6,166 2,429 926
on in
Progress
Leases 18,733 14,381 - 375 223
Transporta 783 742 680 723 808
tion
Equipment
Other 2,571 2,161 1,500 1,238 1,100
Property,
Plant &
Equipment
Accumulat 23,135 19,408 16,592 14,349 13,049
ed
Depreciati
on
Buildings - - 4,296 3,472 3,022
Machinery 14,986 12,610 10,949 9,622 8,868
&
Equipment
Transporta 534 505 486 483 507
tion
Equipment
Other 1,036 1,014 861 770 653
Property,
Plant &
Equipment
Total 70 70 74 4,669 -
Investments
and
Advances
Other 70 70 74 4,669 -
Long-Term
Investmen
ts
Long-Term 68 127 83 59 63
Note
Receivable
Intangible 198 191 210 232 172
Assets
Net - 15 37 37 19
Goodwill
Net Other 198 175 173 195 153
Intangible
s
Other 491 533 296 390 375
Assets
Tangible 491 533 296 390 375
Other
Assets
Total Assets 133,899 127,101 99,845 72,249 55,703
1. Horizontal Analysis
In Horizontal Analysis, each item’s percentage change is calculated year-
over-year. This analysis shows the growth or decline of each category
relative to the previous year.
Horizontal Analysis Table (Year-over-Year Growth Rates)
Category 2023 vs 2022 vs 2021 vs 2020 vs
2022 2021 2020 2019
Cash & Short Term -31.37% 175.78% 23.94% 21.33%
Investments
Total Accounts -13.47% 50.13% 112.79% -11.74%
Receivable
- Accounts Receivables, -17.63% 75.08% 123.90% -24.96%
Net
Inventories 10.56% 27.99% 21.48% 18.74%
Other Current Assets 317.01% 72.22% -92.45% 36.12%
Net Property, Plant & 8.26% 16.18% 74.32% 38.20%
Equipment
Total Investments & 0.00% -5.41% -98.42% -
Advances
Long-Term Note -46.46% 53.01% 40.68% -6.35%
Receivable
Intangible Assets 3.66% -9.05% -9.48% 34.88%
Other Assets -7.88% 80.07% -24.10% 4.00%

2. Vertical Analysis
In Vertical Analysis, each item on the balance sheet is represented
as a percentage of Total Assets for each respective year. This
analysis helps show the composition of assets over time.
Vertical Analysis Table (Percentage of Total Assets)
Category 2023 2022 2021 2020 2019
Total Assets (Base) 100% 100% 100% 100% 100%
Cash & Short-Term 1.44 2.21 1.02 1.14 1.22
Investments % % % % %
Total Accounts 15.34 18.67 15.84 10.29 15.12
Receivable % % % % %
- Accounts 12.41 15.87 11.55 7.13 12.33
Receivables, Net % % % % %
Inventories 38.10 36.29 36.11 41.06 44.86
% % % % %
Other Current Assets 0.92 0.23 0.17 3.13 2.98
% % % % %
Net Property, Plant 43.04 41.87 45.88 36.37 34.12
& Equipment % % % % %
Total Investments & 0.05 0.06 0.07 6.46 -
Advances % % % %
Long-Term Note 0.05 0.10 0.08 0.08 0.11
Receivable % % % % %
Intangible Assets 0.15 0.15 0.21 0.32 0.31
% % % % %
Other Assets 0.37 0.42 0.30 0.54 0.67
 % % % % %
Kohinoor Textile Mills
Income Statement
For the Fiscal Year Ending June 30 (in PKR Millions)
Description 2023 2022 202 2020 2019
1
Sales/Revenue 104,0 87,8 65,3 50,79 46,8
35 97 62 4 26
Cost of Goods Sold 78,79 64,7 50,5 46,24 37,5
(COGS) 1 49 50 6 53
Gross Income 25,24 23,1 14,8 4,548 9,27
3 48 12 3
SG&A Expense 6,139 5,70 4,00 3,111 2,82
5 0 8
EBIT 18,89 17,1 10,7 1,442 6,47
7 97 23 2
Interest Expense 4,298 2,58 1,99 3,584 1,59
4 3 6
Pretax Income 15,55 10,3 13,6 (2,59 5,21
9 46 94 2) 7
Income Tax 6,370 5,01 2,64 3 840
5 1
Net Income 6,443 3,87 8,46 (992) 3,12
1 0 8
EPS (Basic) 21.55 12.9 28.2 (3.32 10.4
3 6 ) 5

Horizontal Analysis
Horizontal analysis evaluates the percentage change in each item over the
five-year period.
Description 2023 vs 2022 vs 2021 vs 2020 vs
2022 2021 2020 2019
Sales/ +18.36% +34.48% +28.68% +8.47%
Revenue
COGS +21.69% +28.09% +9.31% +23.15%
Gross +9.05% +56.28% +225.69% -50.96%
Income
SG&A +7.61% +42.61% +28.60% +9.97%
Expense
EBIT +9.85% +60.81% +629.60% -77.74%
Interest +66.34% +29.65% -44.40% +124.55%
Expense
Pretax +50.39% -24.45% +628.31% -149.69%
Income
Net Income +66.46% -54.25% +952.52% -131.73%
EPS (Basic) +66.67% -54.25% +952.50% -131.73%
Vertical Analysis
Vertical analysis expresses each item as a percentage of sales/revenue for
the respective year.
Description 2023 2022 2021 2020 2019
Sales/Revenue 100.0 100.0 100.0 100.0 100.0
0% 0% 0% 0% 0%
Cost of Goods Sold 75.75 73.67 77.24 91.06 80.24
(COGS) % % % % %
Gross Income 24.26 26.35 22.65 8.95% 19.78
% % % %
SG&A Expense 5.89% 6.49% 6.12% 6.12% 6.03%
EBIT 18.16 19.55 16.38 2.84% 13.81
% % % %
Interest Expense 4.13% 2.94% 3.05% 7.05% 3.41%
Pretax Income 14.96 11.76 20.93 - 11.14
% % % 5.10% %
Net Income 6.19% 4.40% 12.92 - 6.67%
% 1.95%
EPS (Basic) 20.68 14.70 43.45 - 22.32
% % % 6.54% %
Summary
1. Sales Growth: Kohinoor Textile Mills has shown consistent sales
growth, particularly in 2022 and 2023, reflecting strong market
demand and operational performance.
2. COGS Trends: COGS has grown significantly, but the gross profit
margin indicates improving efficiency and pricing power.
3. Profitability: Both EBIT and net income have shown notable growth,
especially in 2023, indicating better operational management and cost
control.
4. EPS Growth: The substantial growth in EPS reflects the company's
increasing profitability, which is a positive signal for investors.
5. Vertical Analysis Insights: The vertical analysis shows that the
company has improved its gross profit margin over the years, though
expenses also remain a significant percentage of sales.
Kohinoor Textile Mills
Balance Sheet
Assets
Description 2023 2022 2021 2020 2019
Current Assets
Cash & Short Term 12,19 6,462 11,3 5,50 5,63
Investments 2 09 9 5
Accounts Receivable 7,032 6,480 4,94 5,41 4,22
7 4 8
Inventories 25,12 23,77 17,6 17,2 14,4
9 2 13 18 78
Other Current Assets 2,073 1,827 3,10 2,16 1,27
7 4 6
Total Current Assets 46,49 38,21 37,0 30,2 26,0
9 0 92 33 47
Non-Current Assets
Net Property, Plant & 83,54 71,46 56,0 54,6 56,3
Equipment 6 9 12 78 13
Intangible Assets 7 10 6 9 14
Other Assets 120 112 110 109 109
Total Assets 132,7 113,5 97,6 90,0 86,3
97 54 60 98 32
Liabilities and Shareholders' Equity
Description 2023 2022 2021 202 2019
0
Current Liabilities
Short-Term Debt & Current 12,64 13,28 11,8 14,4 9,56
Portion LT Debt 9 1 18 48 1
Accounts Payable 7,281 5,240 4,70 5,45 4,37
8 6 6
Other Current Liabilities 10,69 8,767 6,53 6,19 5,96
7 4 7 1
Total Current Liabilities 31,16 27,61 23,0 26,1 19,8
7 6 59 00 98
Non-Current Liabilities
Long-Term Debt 21,67 21,07 14,8 15,0 17,5
3 9 11 67 26
Deferred Taxes 9,264 5,372 3,94 2,53 3,10
9 0 6
Total Liabilities 66,39 55,86 44,9 47,5 43,1
9 9 46 01 24
Shareholders' Equity
Common Equity 44,97 38,76 35,5 27,8 29,4
5 6 92 40 06
Total Shareholders' Equity 44,97 38,76 35,5 27,8 29,4
5 6 92 40 06
Total Liabilities and Equity 132,7 113,5 97,6 90,0 86,3
97 54 60 98 32

Horizontal Analysis
Horizontal analysis evaluates the percentage change in each item over the
five-year period.
Description 2023 vs 2022 vs 2021 vs 2020 vs
2022 2021 2020 2019
Total Assets +16.95% +16.27% +8.39% +4.36%
Total Current Assets +21.54% +3.01% +22.87% +15.67%
Net Property, Plant & +16.96% +27.49% +2.45% -2.41%
Equipment
Total Current +12.60% +19.82% -11.63% +31.66%
Liabilities
Total Liabilities +18.73% +24.38% -5.32% +9.00%
Total Shareholders' +16.03% +8.76% +28.15% -1.92%
Equity

Vertical Analysis
Vertical analysis expresses each item as a percentage of total assets for the
respective year.
Description 2023 2022 2021 2020 2019
Current Assets 34.99 33.66 38.00 33.51 30.19
% % % % %
Net Property, Plant & 62.97 62.97 57.29 60.73 65.27
Equipment % % % % %
Total Assets 100.0 100.0 100.0 100.0 100.0
0% 0% 0% 0% 0%
Total Current 23.47 24.33 23.67 29.19 23.05
Liabilities % % % % %
Total Liabilities 50.00 49.20 46.02 52.72 49.95
% % % % %
Total Shareholders' 33.87 34.14 36.44 30.90 34.06
Equity % % % % %

Summary
1. Asset Growth: Kohinoor Textile Mills shows a consistent increase in
total assets over the years, indicating positive operational growth.
2. Current Assets: The company has improved its liquidity position, with
a significant increase in cash and short-term investments.
3. Liabilities: Total liabilities have increased, but the percentage of
liabilities to total assets remains steady, reflecting prudent financial
management.
4. Equity Growth: Shareholders' equity has grown significantly,
indicating that the company is retaining earnings and strengthening its
capital base.
5. Ratios: The current ratio indicates healthy short-term financial health,
while the increase in total liabilities relative to assets should be
monitored to ensure it remains manageable.