Gul Ahmed Textile Mills Limited (GATM), a manufacturer of textile products, reported a massive fall in profits in fiscal year 2022-23, largely driven by a high cost of sales and finance costs.
In a consolidated statement released to the Pakistan Stock Exchange (PSX) on Tuesday, the company posted a profit after tax of Rs4.88 billion, a decrease of over 50% against Rs9.85 billion recorded in the same period of the previous year.
Resultantly, earnings per share of GATM in FY23 declined to Rs6.62 compared to Rs13.3 in the same period last year.
The textile manufacturer saw its total revenue grow by 14% to Rs138.93 billion from Rs121.81 billion recorded in the SPLY. However, despite higher sales, the profit margin of the company reduced to 20% in FY23, as compared to 22.2% in the same period of the previous year, on account of high cost of sales.