The firm is currently listed on Karachi Stock Exchange and Lahore Stock Exchange. PRWM dwells in the manufacture of high quality apparel and home furnishing since June 1993. The production facility comprises of 340 looms of various widths with annual capacity of 55 million linear meters of fabric. The company supplies its products to customers in Europe, North America and Far East countries.
PERFORMANCE FOR 9M FY14 PRWM's latest processes on the whole have been on a dip with paltry top line growth affecting to meager bottom line due to the ongoing acute energy crisis and rise in cost of raw material. The sales proceeds of the company are steadily improving in comparison to the corresponding period of the former year. During the nine months of the ongoing fiscal, sales revenue of Rs 4.9 billion grew slightly by 3.9 percent year on year against sales revenue of Rs 4.7 billion attained in the same period of last year.
PRWM's gross profit dropped by 19.7 percent year on year in 9M FY14: Cost of production grew out of step owing to rise in yarn prices, increase in energy costs and wages during the period under review. In spite of sinking gross profit and operating profit, PRWM has revealed net profit after tax of Rs 153 million shouldering on reduction in all major expenses. Moreover, extra support to bottom line was presented by fall in core operating outlays of 8 percent year on year. Finance cost for the term also depreciated by and 10.5 percent year on year due to repayments of long-term loans and efficient working capital management.
The current ratio for PRWM in 9M FY14 is 1.48 and the quick ratio is 0.76, signifying that the firm holds petty readily accessible liquefiable assets. The non-current liabilities also fell by 9.4 percent year on year owing to decrease in long-term financing by the firm. As the profit after tax deteriorated by 34 percent year on year, the earnings per share decked from Rs 12.62 to Rs 8.32 for vis-à-vis previous financial year.
FUTURE OUTLOOK The global economic environments have not evolved much in the ongoing fiscal year, nonetheless, optimism reigns that world economy will recover soon. Rising exports of dyed and processed fabrics have increased the demand for greige fabric both in domestic and International markets. Reportedly, the State Bank of Pakistan has predicted 6 percent growth in the exports starting from 2FY14 onwards due to the GSP+ status awarded by the European Union. With the aim to tap the future growth, the management of the company has decided to supplement another 36 air jet looms which will benefit the firm to diversify its product array and take advantage of economies of scale to get competitive advantage over its competitors.
==========================================
9MFY13 9MFY14
==========================================
Profitability
------------------------------------------
Gross profit margin 10.2% 7.9%
Operating profit margin 7.7% 5.4%
Net profit margin 4.9% 3.1%
ROE 31.2% 17.1%
ROA 11.8% 8.5%
------------------------------------------
Liquidity
------------------------------------------
Current ratio 1.25 1.48
Quick ratio 0.63 0.76
------------------------------------------
Turnover
------------------------------------------
Total asset turnover 2.41 2.73
Fixed asset turnover 5.66 5.52
------------------------------------------
Marke
------------------------------------------
EPS - Rs 12.62 8.32
==========================================
Source: Company accounts