Artistic Denim Mills : TRANSMISSION OF QUARTERLY ACCOUNTS FOR THE PERIOD ENDED SEPTEMBER 30, 2022

QUARTERLY REPORT

SEPTEMBER 30, 2022

CONTENTS
COMPANY INFORMATION ..............................................................................	3
DIRECTORS' REVIEW REPORT TO THE MEMBERS .........................................	4
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION ........................	6
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS ..............................	7
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME ................	8
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY .........................	9
CONDENSED INTERIM STATEMENT OF CASH FLOWS ..................................	10
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS .................	11

ARTISTIC DENIM MILLS LIMITED

	QUARTERLY REPORT
	SEPTEMBER 30, 2022
COMPANY INFORMATION
Board of Directors
Chief Executive	Mr. Muhammad Faisal Ahmed
Chairman	Mr. Muhammad Iqbal Ahmed
Directors	Mr. Muhammad Yousuf Ahmed
	Mr. Muhammad Ali Ahmed
	Ms. Zahra Faisal Ahmed
	Mr. Yazdani Zia
	Mr. Muneer Ahmed
Audit Committee
Chairman	Mr. Yazdani Zia
Members	Mr. Muhammad Iqbal Ahmed
	Mr. Muhammad Ali Ahmed
Human Resource and
Remuneration Committee
Chairman	Mr. Yazdani Zia
Members	Mr. Muhammad Faisal Ahmed
	Ms. Zahra Faisal Ahmed
Chief Financial Officer	Mr. Sagheer Ahmed
Company Secretary	Mr. Muhammad Ozair Qureshi
Chief Internal Auditor	Mr. Salman Arif
Auditors	M/s. Reanda Haroon Zakaria & Company
	Chartered Accountants
Legal Advisor	Monawwer Ghani
	Advocate
Share Registrar	M/s F.D. Registrar Services (SMC Pvt.) Limited
	17th Floor, Saima Trade Tower-A,
	I.I. Chundrigar Road, Karachi.
	Tel: [phone]
Bankers	Allied Bank Limited
	Bank Al Habib Limited
	BankIslami Pakistan Limited
	Faysal Bank Limited
	Habib Metropolitan Bank Limited
	Meezan Bank Limited
	National Bank of Pakistan
	Standard Chartered Bank (Pakistan) Limited
	United Bank Limited
	Woori Bank
Registered Office	Plot No. 5-9,23-26, Sector 16,
and Factory	Korangi Industrial Area, Karachi.
	UAN: 111 236 236, Fax No. 3505 4652
	www.admdenim.com
ARTISTIC DENIM MILLS LIMITED	03

QUARTERLY REPORT

SEPTEMBER 30, 2022

DIRECTORS' REVIEW

The Directors of Artistic Denim Mills Limited (the Company) takes pleasure in presenting this Review Report together with the un-audited condensed interim financial statements of the Company for the first quarter ended September 30, 2022.

PERIOD UNDER REVIEW

Comparative financial results for the current period and that of the corresponding period last year are as follows:

	September 30, 2022	September 30, 2021
	Rs. in ('000')	Rs. in ('000')
Net Sales	3,463,382	4,405,561
Gross profit	400,807	406,533
Other income	187,034	41,224
Finance costs	131,096	70,543
Net Profit	245,078	178,364
EPS (Rs. per share)	2.92	2.12

Despite the challenging economic conditions, your Company recorded net sales revenue of Rs. 3,463.382 million as compared to Rs. 4,405.561 million during the same period last year. The decrease in sales was primarily due to global recession, therefore, slowdown in demand in the international market. The gross profit margin improved to 11.57% from 9.23% as compared to same period last year on account of devaluation of Pakistan Rupee and effective cost controls. Other income increased from Rs. 41.224 million to Rs. 187.034 million due to exchange gain on exports. Finance costs increased from Rs. 70.543 million to Rs. 131.096 million due to steep increase in policy rate, increase in SBP Long Term Financing Facility (LTFF) & Export Finance Scheme (EFS) rate and increase in working capital requirement due to increase in cotton prices. Accordingly, the Company earned net profit after tax for the period amounting to Rs. 245.078 million (September 30, 2021: 178.364 million) reflecting an increase of profit by 37.40%. The net profit translated into Earnings per Share (EPS) of Rs. 2.92 as against Rs. 2.12 for the corresponding period of last year.

FUTURE OUTLOOK

Pakistan business outlook is undetermined amidst fear of global recession indicate lower demand in Pakistan's export market at a time when the country is facing supply chain challenges for import of raw materials, inflationary pressures and monetary tightening policies. Further escalation in Russia-Ukraine conflict and local political scenario coupled with adverse impact on economy due to unprecedented floods in Pakistan may also take a toll on exports. At present, competition in textiles is becoming increasingly tough in the midst of the aforesaid factors, thereby negatively impacting the competitiveness of exports. Price competitiveness and prompt delivery of quality products will therefore be increasingly instrumental in determining which countries are able to enhance or even maintain exports. Accordingly, based on currently available information, GDP growth could fall to around 2 percent in Financial Year 2023, compared to the previous forecast of 3-4 percent before the floods.

04 ARTISTIC DENIM MILLS LIMITED