VISION

To be one of the leaders in textile sector by producing quality products according to Customer’s
specification.

MISSION
Our mission is to continuously improve our products and serve our customers. Provide quality
products and services to our customers mainly engaged in the manufacturing of textile products
and made-ups. Keeping pace with the rapidly changing technology by continuous balancing,
modernization and replacement (BMR) of plant and machinery. Enhancing the pro? tability by
improved ef? ciency and cost controls. Provide a professional open and participation
environment to our dedicated employees for developing their potential and team performance.
Protecting the environment and contribution towards the economic strength of the country and
function as a good corporate citizen.

Goal
Although presently the economic and political situation in Pakistan isn't stable yet, however as
our concern is with the export market, therefore our main priority is availability of energy, its
cost and other cost pushups taken place, which will make us globally uncompetitive. The
situation has been further aggravated by a steep depreciation of the currency in the last few
months. All these factors are putting huge pressure on the disposable income of the consumer
and might have an adverse impact on the consumption. The economic stability would largely
depend on political firmness, a proactive and prudent monetary policy and access to external
financing. A predictable and stable energy policy is required for improving business confidence
levels and increase in investment in industry. The industrial electricity tariff of other textile
exporting countries is lower than Pakistan making us uncompetitive in the international market.
The objective of the Pakistani textile industry to become an export ''powerhouse'' cannot be
achieved until power tariff are revised to a competitive and stable level. It is projected that the
profitability in the coming months will be impacted due to increase in commodity prices, power
cost, rupee devaluation, minimum wage increases, markup rates, etc., resulting in escalation in
cost of doing business. In Pakistan, unprecedent flood have seriously damaged the crops and so
far, the quality and quantity both seem less than expected. We are anticipating crop of 12 million
bales, whereas it now appears to be 6 to 8 million bales which will be a tremulous task to import
and make this cotton available. Therefore, we foresee that the textile industry will go through a
rough period because of shortage of raw material. To counter this challenging economic
situation; the Pakistani textile sector shall have to be a cost effective niche marketing, product
and customer development are the essential tools to remain competitive domestically and
internationally. The efforts on marketing side especially focused on international brands and
technical textiles, will ensure increased revenue and better margin. On the cost side, better
supply-chain management for raw materials and innovation in production processes shall remain
pivotal parts of the
COMPANY INFORMATION
CHAIRMAN
Mrs. Khushbu Ammad

CHIEF EXECUTIVE
Mr. Khawar Almas Khawaja

DIRECTORS
Mr. Khawar Almas Khawaja

Mrs. Khushbu Ammad

Mr. Dilshad Ali

Mrs. Nighat Khawar

Mr. Muhammad Alamgir

Mr. Abid Hussain

Mr. Zeeshan Ali Qamar

AUDIT COMMITTEE
Chairman Mr. Abid Hussain

Member Mrs. Khushbu Ammad

Member Mr. Zeeshan Ali Qamar

HR AND REMUNERATION COMMITTEE

Chairman Mr. Abid Hussain

Member Mr. Khawar Almas Khawaja

Member Mr. Muhammad Alamgir

COMPANY SECRETARY
Mr. Ralph Nazir Ullah

CHIEF FINANCIAL OFFICER

Mr. Tauqeer Hussain
LEGAL ADVISOR
Mr. Sajjad Haider Tanvir Ali Shah

(Bukhari Law Chamber)

AUDITORS
HLB Ijaz Tabussum & Co

Chartered Accountants

Lahore

INTERNAL AUDITORS Awan & Co (Chartered Accountants), Lahore

SHARES REGISTRAR Corplink (Pvt) Ltd Lahore

BANKERS National Bank of Pakistan

Bank Alfalah Limited

Meezan Bank Limited

Habib Metropolitan Bank Ltd

REGISTERED OFFICE
House # 133-A-1, Block - A

Model Town, Lahore

MILLS Changa Manga Road, Wan Adhan

Pattoki, Kasur
CONTACT

TELEFAX 049-4528188

TELEPHONE 049-4528177, 049-4528099

EMAIL accounts@hamid-textile.com , sales@hamid-textile.com

corporate@hamid-textile.com
 Financial Analysis
GROSS PROFIT MARGIN

FORMULA:

YEAR 2022:

GROSS PROFIT MARGIN = 15755544 / 551810523 *100%

GPM = 2.86% ANSWER

YEAR 2021:

GROSS PROFIT MARGIN = 4592180 / 313982107 *100%

GPM = 1.46% ANSWER

YEAR 2020:

GROSS PROFIT MARGIN = 4190546 / 259440185 *100%

GPM = 1.62% ANSWER

YEAR 2019:

GROSS PROFIT MARGIN = 1884906 / 2186632461 *100%

GPM = 0.86% ANSWER

YEAR 2018:

GROSS PROFIT MARGIN = 699706 / 163849894 *100%

GPM = 0.86% ANSWER

YEAR 2017:

GROSS PROFIT MARGIN = 9117431 / 171838859 *100%

GPM = 5.31% ANSWER

PROFITABILITY RATIOS

2022-2017

Particulars 2022 2021 2020 2019 2018 2017

Gross profit Margin (%) 2.86 1.46 1.62 0.86 0.43 5.31

NET PROFIT MARIGN

FORMULA:

YEAR 2022:

NET PROFIT MARGIN = 8460722/ 551810523 *100%

NPM = 1.53% ANSWER

YEAR 2021:

NET PROFIT MARGIN = (23,096,371) / 313982107 *100%

NPM = (7.36) % ANSWER

YEAR 2020:

NET PROFIT MARGIN = (14,522,130) / 259440185 *100%

NPM = (5.60)% ANSWER

YEAR 2019:

NET PROFIT MARGIN = (27,922,341) / 2186632461 *100%

NPM = (12.77) % ANSWER

YEAR 2018:

NET PROFIT MARGIN = (9,568,118) / 163849894 *100%

NPM = (5.84)% ANSWER

YEAR 2017:

NET PROFIT MARGIN = (5,549,458) / 163849894 *100%

NPM = (3.23)% ANSWER

PROFITABILITY RATIOS

2022-2017

Particulars 2022 2021 2020 2019 2018 2017

Net Profit Margin (%) 1.53 (7.36) (5.60) (12.77) (5.84) (3.23)

OPERATING PROFIT MARGIN

FORMULA:

YEAR 2022:

OPERATING PROFIT MARGIN = (8401703) / 551810523 *100%

OPM = (1.52)% ANSWER

YEAR 2021:

OPERATING PROFIT MARGIN = (15473994) / 313982107 *100%

OPM = (4.9)% ANSWER

YEAR 2020:

OPERATING PROFIT MARGIN = (12453481) / 259440185 *100%

OPM = (4.8)% ANSWER

YEAR 2019:

OPERATING PROFIT MARGIN = (17114307) / 2186632461 *100%

OPM = (7.8)% ANSWER

YEAR 2018:

OPERATING PROFIT MARGIN = (14740670) / 163849894 *100%

OPM = (9.0)% ANSWER

YEAR 2017:
OPERATING PROFIT MARGIN = (8563897) / 171838859 *100%

OPM = (5.0)% ANSWER

PROFITABILITY RATIOS

2022-2017

Particulars 2022 2021 2020 2019 2018 2017

Operating profit Margin (%) (1.52) (4.9) (4.8) (7.8) (9.0) (5.0)

RETURN ON CHANGE IN EQUITY

FORMULA:

PROFITABILITY RATIOS

2022-2017

Particulars 2022 2021 2020 2019 2018 2017

ROCE (%) 14.9 21.5 11.2 9.2 24.90 18.26

 PROFITABILITY RATIOS

2022-2017

Particulars 2022 2021 2020 2019 2018 2017

Gross profit Margin (%) 2.86 1.46 1.62 0.86 0.43 5.31

Net Profit Margin (%) 1.53 (7.36) (5.60) (12.77) (5.84) (3.23)

Operating profit Margin (%) (1.52) (4.9) (4.8) (7.8) (9.0) (5.0)

ROCE (%) 14.9 21.5 11.2 9.2 24.90 18.26

NET ASSET TURNOVER (%) 0.75 0.66 0.532 0.432 0.321 0.211

LIQUIDITY

PARTICULAR 2022 2021 2020 2019 2018 2017

S

Current 6.39 7.35 7.02 6.21 6.40 5.6

Liquidity
(Times)
Quick Liquidity 6.04 7.02 6.75 6.00 6.21 5..45
(Times)

W.C Ratios

PARTICULAR 2022 2021 2020 2019 2018 2017

S

Inventory 28 32 36 28 26 32
Turnover (%)

Receivable 0.77 5.37 4.23 8.9 3.2 2.1

Collection

Payable 211 218 249 380 449 386

Payment Period
(Days)

Investor
PARTICULAR 2022 2021 2020 2019 2018 2017
S

EPS 0.56 0.64 (1.74) (1.09) (0.32) (0.35)

P/E (Times) 9.80 8.50 4.78 4.64 4.47 2.53

 Conclusions and Recommendations:
Financial Analysis
 Gross Profit Margin: This ratio has improved consistently from 2018 to 2022, although
it's still below the 2017 level. This improvement suggests that the company is becoming
more efficient in its production or service provision, or it could be benefiting from higher
sales prices or lower costs of goods sold.
 Net Profit Margin: There's a turnaround from a negative net profit margin in 2017-2020
to a positive margin in 2021 and 2022. This improvement is a good sign and indicates the
company is becoming profitable after a period of losses. The focus should be on
maintaining and improving this trend.
 Operating Profit Margin: This ratio was negative from 2017 to 2021 but improved in
2022, although still negative. This suggests the company's core operations are still not
profitable, but the situation is improving. Investigating and addressing the reasons for
operational inefficiencies is essential.
 Return on Capital Employed (ROCE): The ROCE has fluctuated, indicating
inconsistency in how effectively the company is using its capital to generate profits. The
increase in 2022 is a positive sign, but the company needs to strive for more consistent
and higher ROCE values.
 Net Asset Turnover: This ratio has improved steadily over the six years, indicating the
company is getting more efficient at using its assets to generate sales. This is a positive
trend and should be sustained.

Liquidity

 Current Liquidity (Current Ratio): This ratio measures the company's ability to pay its
short-term obligations with its short-term assets. The ratios from 2017 to 2022 are all
well above the standard benchmark of 1, which is generally considered healthy. However,
there is a slight decline in 2022 compared to the previous years. A high current ratio
typically indicates good short-term financial health, but it can also suggest that the
 company may be holding too much in assets that are not being effectively used for
growth.

 Quick Liquidity (Quick Ratio): Similar to the current ratio, the quick ratio measures the
company's ability to meet its short-term obligations but without considering inventory,
which is less liquid. The quick ratios for these years are also well above 1, indicating
strong liquidity. Like the current ratio, there's a slight decrease in 2022. A high quick ratio
is usually a good indicator, but again, it can imply excessive liquidity or underutilization
of assets.

W.C Ratios
 Inventory Turnover: This ratio indicates how often a company's inventory is sold and
replaced over a period. The fluctuations in inventory turnover suggest changes in
inventory management or sales efficiency over the years. The decrease from 2020 to
2022 could imply slower sales or higher inventory levels, which might not be ideal.
 Receivable Collection Period (in Days): This ratio shows the average number of days it
takes for the company to collect payments from its customers. There's a significant
fluctuation over the years, with a particularly low value in 2022. A shorter collection
period is generally better as it improves cash flow, but an extremely low number (like
0.77 in 2022) might need further investigation to understand the underlying cause.
 Payable Payment Period (in Days): This ratio indicates the average number of days the
company takes to pay its suppliers. The significant decrease in the payable period from
2019 to 2022 is notable. While paying suppliers quickly can build good supplier
relationships and possibly allow for discounts, it might also indicate that the company is
not utilizing the full credit terms available, which could be used to improve cash flow.
Investor
 Earnings Per Share (EPS): The EPS shows a company's profitability on a per-share
basis. The data shows a negative EPS from 2017 to 2019, indicating the company was
incurring losses. However, there's a turnaround in 2020, and the EPS becomes positive,
continuing to improve in 2022. This improvement is a good sign and indicates that the
company is becoming profitable.
 Price to Earnings (P/E) Ratio: The P/E ratio is a measure of the price paid for a share
relative to the income or profit earned by the firm per share. A higher P/E ratio typically
indicates that investors expect higher earnings growth in the future compared to
companies with a lower P/E ratio. The increasing P/E ratio from 2017 to 2022 suggests
growing investor confidence in the company's future earnings potential.