Fazal Cloth Mills : Transmission of Quarterly Report for the Period Ended 30-09-2022

For The

Three Months Ended

September 30

Three Months Ended Sep 30, 2022

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Information

1. Condensed Interim Statement of Financial Position (Un-Audited)

1. Condensed Interim Statement of Profit or Loss (Un-Audited)
2. Condensed Interim Statement of Comprehensive Income (Un-Audited)
3. Condensed Interim Statement of Changes in Equity (Un-Audited)

1. Condensed Interim Statement of Cash Flows (Un-Audited)
2. Notes to the Condensed Interim Financial Information (Un-Audited)

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Three Months Ended Sep 30, 2022

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Three Months Ended Sep 30, 2022

		Company Profile
Board of Directors	Sh. Naseem Ahmad	Chairman
	Mr. Rehman Naseem	Chief Executive Officer
	Mr.	Amir Naseem Sheikh	Non - Executive Director
	Mr. Muhammad Mukhtar Sheikh	Executive Director
	Mr. Faisal Ahmed	Non - Executive Director
	Mr. Fahd Mukhtar	Executive Director
	Mr. Babar Ali	Independent Director
	Mr.	Masood Karim Shaikh	Independent Director
	Ms.	Parveen Akhter Malik	Independent Director
Audit Committee	Ms. Parveen Akhter Malik	Independent Director/Chairman
	Mr. Sheikh Naseem Ahmad	Non - Executive Director
	Mr. Amir Naseem Sheikh	Non - Executive Director
Human Resource and	Mr.	Babar Ali	Independent Director
Remuneration Committee	Mr. Babar Ali	Independent Director/Chairman
	Mr. Amir Naseem Sheikh	Non - Executive Director
	Mr.Faisal Ahmad	Non - Executive Director
Strategic Planning Committee
	Mr. Rehman Naseem	Chief Executive Officer
	Mr. Masood Karim Sheikh	Independent Director
	Ms. Parveen Akhter Malik	Independent Director
Company Secretary	Mr. Azher Iqbal
Chief Financial Officer	Mr. Muhammad Azam
Auditors	KPMG Taseer Hadi & Co., Chartered Accountants
Bankers
Allied Bank Limited			Faysal Bank Limited
National Bank of Pakistan		Askari Bank Limited
MCB Bank Limited			The Bank of Punjab
Meezan Bank Limited		The Bank of Khyber
United Bank Limited		Pak Brunei Investment Company Limited
Standard Chartered Bank (Pakistan) Limited	Pak Oman Investment Company Limited
Habib Bank Limited			Summit Bank Limited
Soneri Bank Limited			Dubai Islamic Bank Pakistan Limited
Bank Alfalah Limited		JS Bank Limited
Bank Al Habib Limited		Bank Islami Pakistan Limited
Saudi Pak Industrial & Agricultural Investment	Pak Libya Holding Company (Pvt.) Ltd.
Company Limited
Habib Metropolitan Bank Limited	Pakistan Kuwait Investment Company (Private)
Limited
			Industrial and Commercial Bank of China Limited
Head Office &
Shares Department:	59/3, Abdali Road, Multan.
	Phone: (92),4781637 Fax: [phone]
	E-mail: [e-mail]
	Website: www.fazalcloth.com
Shares Registrar:	Vision Consulting Ltd.
	3-C, LDA Flats, Lawrence Road, [e-mail]
	Phone: [phone] Fax: [phone]
Registered Office:	69/7, Abid Majeed Road, Survey No. 248/7, Lahore Cantt, Lahore.
	Phone: [phone]
Mills:	i)	Fazal Nagar, Jhang Road, Muzaffargarh - Pakistan
		Ph. (92) 66-2422216,18	Fax: [phone]

1. Qadirpur Rawan Bypass, Khanewal Road, Multan - Pakistan

Ph. (92)61-6740041-43, Fax : [phone]

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Three Months Ended Sep 30, 2022

DIRECTORS' REVIEW

Dear Shareholders!

Assalam-o-Alaikum

Your Directors are pleased to present before you un-audited financial information of Fazal Cloth Mills Limited, for three months ended September 30, 2022.

Sales were recorded at Rs. 18,468.51 million during the three months of the current financial year compared to Rs. 13,519.74. Your Company earned after tax profit of Rs. 525.57 million (pre-tax profit of Rs. 736.69 million) as compared to Rs. 1,557.08 million (pre-tax profit of Rs. 1,735.56 million) for the corresponding period last year after charging depreciation of Rs. 430.12 million (September 30, 2021: Rs. 397.46 million). EBITDA of Rs. 2,144.98 million (September 30, 2021: Rs. 2,552.57 million) was generated.

Earnings per Share of the Company for the three months ended September 30, 2022 was Rs. 17.52 as compared to Rs. 51.90 for corresponding period in previous year.

				Three months ended			Increase /
									(decrease)
	Financial Highlights			30-Sep-22		30-Sep-21
				Rupees in ('000')		Rupees in ('000')			% age
	Sales - net	18,468,508		13,519,743			36.60%
	Cost of sales	15,843,703		10,873,955			45.70%
	Gross profit	2,624,805		2,645,788			-0.79%
	EBITDA	2,144,977		2,552,574			-15.97%
	Depreciation	430,122		397,462			8.22%
	Finance cost	978,168		419,553			133.15%
	Other income	8,568		29,575			-71.03%
	Profit before tax	736,687		1,735,560			-57.55%
	Profit after tax	525,573		1,557,082			-66.25%
	Earnings per share - Rs.	17.52		51.90			-66.25%

Future Outlook

Retailers across the world and particularly in USA and EU continue to reduce inventories fearing a recession and lack of demand. Central Banks continue to tighten monetary policy to fight inflation. As a result, demand for clothing and textiles remains dismal and prices for textile products continue to fall. This has resulted in lower margins as well as inventory losses for your Company. Under the circumstances, the financial results of the Company are reasonable. Your management expects this situation to continue for the next 3 to 6 months. All efforts are being made to improve sales, reduce inventory and operating cost to cope with this difficult period.

Management and Labor Relations

The relations between the workers and management remained cordial throughout the period. Your Directors wish to thank all workers and staff members for their hard work.

Dated: November 29, 2022

(Sheikh Naseem Ahmad)

Chairman

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