Key Takeaways
- Zephyr Textiles Limited saw a 41.67% year-on-year growth in 2021.
- The company's margins reached a high of 13.2% in 2021, up from 9.30% in 2020.
- Zephyr Textiles Limited's net profit surged by 448.5% in 2021.
Zephyr Textiles Limited, a private limited company incorporated in 1999 and converted into a public limited company in 2004, has reported significant growth in 2021, according to its financial performance review.
The company's topline, or total revenue, grew by 41.67% year-on-year in 2021, reaching Rs.6128.89 million, primarily due to robust orders for basic textiles from both local and export markets.
Capacity utilization across all three units of Zephyr Textiles increased in 2021, and the company began commercial dyeing of knit fabric for garment exporters, which contributed to the sales volume.
Gross profit surged by 101.02% in 2021, with a gross profit margin of 13.2%, the highest during the period under consideration, compared to 9.30% in 2020.
Administrative expenses increased by 5.98% in 2021, driven by higher payroll and utility charges, while distribution expenses rose by 60.60% due to increased sales volume and higher freight charges.
The company reduced its number of employees to 1068 in 2021, but no exchange gain was recorded, leading to a 60.74% decrease in other income.
Other expenses increased by 113% in 2021, mainly due to higher profit-related provisioning and exchange losses due to fluctuations in exchange rates and commodity prices.
Operating profit grew by 138.85% in 2021, with an operating profit margin of 7.72%, the highest during the period under consideration, compared to 4.60% in 2020.
Monetary easing and efficient utilization of financing lines resulted in a 7.92% reduction in finance costs in 2021.
Zephyr Textiles Limited's gearing ratio improved from 50.77% in 2020 to 46.94% in 2021, and net profit strengthened by 448.5% in 2021.
