Ibrahim Fibres : Transmission of Quarterly Report for the Period Ended 30-09-2023

CONTENTS

Company Information	02
Directors' Review	04
Condensed Interim Statement of Financial Position	06
Condensed Interim Statement of Profit or Loss	07
Condensed Interim Statement of Comprehensive Income	08
Condensed Interim Statement of Cash Flows	09
Condensed Interim Statement of Changes in Equity	10
Selected Explanatory Notes to the Condensed Interim	11
Financial Statements
Directors' Review - Urdu	17

COMPANY INFORMATION

BOARD OF DIRECTORS

Sheikh Mukhtar Ahmad

Chairman

Mohammad Naeem Mukhtar

Chief Executive Officer

Muhammad Waseem Mukhtar

Sarah Naeem

Abdul Hameed Bhutta

Saba Muhammd

Ikram ul Haq Mian

CHIEF FINANCIAL OFFICER

Mohammad Naeem Asghar

COMPANY SECRETARY

Farhan Siddique

AUDITORS

Yousuf Adil

Chartered Accountants

HUMAN RESOURCE & REMUNERATION COMMITTEE

Saba Muhammd

Chairperson

Abdul Hameed Bhutta

Member / Secretary

Ikram ul Haq Mian

Member

AUDIT COMMITTEE

Ikram ul Haq Mian

Chairman

Abdul Hameed Bhutta

Member

Saba Muhammd

Member

Muhammad Iqbal Chaudhry

Secretary

REGISTRAR'S & SHARES

REGISTRATION OFFICE

CDC Share Registrar Services Limited

CDC House, 99 - B, Block - B, S.M.C.H.S.

Main Shahra-e-Faisal, Karachi - 74400, Pakistan

BANKERS

Allied Bank Limited

Askari Bank Limited

Bank Alfalah Limited

Bank Al Habib Limited

BankIslami Pakistan Limited

Citibank, N.A.

Dubai Islamic Bank Pakistan Limited

Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Limited

Industrial and Commercial Bank of China Limited

JS Bank Limited

MCB Bank Limited

Meezan Bank Limited

National Bank of Pakistan

Standard Chartered Bank (Pakistan) Limited

The Bank of Punjab

United Bank Limited

REGISTERED OFFICE

Ibrahim Centre

1 - Ahmed Block

New Garden Town

Lahore - 54600, Pakistan

HEAD OFFICE

Ibrahim Centre

15 - Club Road

Faisalabad - 38000, Pakistan

PROJECTS LOCATION

38 - 40 Kilometers

Faisalabad - Sheikhupura Road

Faisalabad, Pakistan

02 THIRD QUARTERLY REPORT 2023

DIRECTORS' REVIEW

The Directors of your Company are pleased to present before you the unaudited financial results of the Company for the third quarter of current financial year and nine months ended September 30, 2023.

OPERATING PERFORMANCE

During the period of nine months under review, the polyester plant of your Company produced 204,760 tons of Polyester Staple Fibre (PSF) as compared to production of 263,346 tons of PSF during the corresponding period of previous year. Out of this production, 24,861 tons of PSF were consumed by the textile plants of your Company for production of blended yarns as against 26,328 tons consumed during the corresponding period of previous year.

The textile plants of your Company produced 40,171 tons of blended yarns of different counts during the period of nine months under review as against production of 41,744 tons during the corresponding period of previous year.

FINANCIAL PERFORMANCE

The net sales during the period of nine months under review amounted to Rs. 90,863 million as compared to Rs. 91,297 million during corresponding period of previous year.

Your Company earned gross profit of Rs. 8,658 million for the period of nine months under review as compared to Rs. 13,640 million during corresponding period of previous year.

During the period of nine months under review, your Company earned profit before tax of Rs. 5,053 million as compared to Rs. 11,104 million during corresponding period of previous year. Profit after tax amounted to Rs. 1,820 million for the period of nine months under review as compared to Rs. 6,447 million for the corresponding period of previous year.

INDUSTRY OVERVIEW & FUTURE OUTLOOK

During the period under review, domestic industry faced many challenges including but not limited to unstable exchange rate, elevated inflation, high interest rates, swollen energy costs and severe taxation measures. All these factors translated into an extremely dull performance by all major manufacturing sectors of the domestic economy. So far as crude oil market is concerned, it also remained stacked with uncertainty throughout the period. Moreover, there was a substantial increase in import of PSF due to unusual incentives given by Government of Pakistan to domestic importers further hurting the operations of domestic PSF manufacturers.

Going forward, these factors will continue to persist as a challenge to the domestic industry. Accordingly, all the corrective policy measures are also expected to remain continued in order to address the macroeconomic vulnerabilities. Therefore, capacity utilisation of large scale manufacturing in general and textile value chain in particular is expected to go further down resulting in significant decrease in margins.

EARNINGS PER SHARE

Profit per share for the period of nine months under review comes to Rs. 5.86 as compared to Rs. 20.76 for the corresponding period of previous year.

		On behalf of the Board
Lahore	Director	Director
October 23, 2023

04 THIRD QUARTERLY REPORT 2023

IBRAHIM FIBRES LIMITED

CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED SEPTEMBER 30, 2023

CONDENSED INTERIM STATEMENT OF

FINANCIAL POSITION

As at September 30, 2023

		Unaudited		Audited
		September 30,		December 31,
		2023	2022
	Note	Rupees		Rupees
NON - CURRENT ASSETS
Property, plant and equipment	3	39,815,129,829		38,574,670,166
Intangible assets		149,109,932		156,735,497
Long term loans		125,374,622		132,205,551
Long term deposits		11,780,598		9,557,368
CURRENT ASSETS		40,101,394,981		38,873,168,582
Stores, spare parts and loose tools		7,682,982,931		5,753,243,939
Stock in trade		31,523,574,129		26,125,707,178
Trade debts		1,505,233,006		1,992,226,388
Loans and advances		4,715,615,175		2,771,491,668
Prepayments		162,579,155		96,890,500
Other receivables		9,697,194,072		7,336,915,398
Short term investment		-		13,258,192
Cash and bank balances		96,414,742		114,023,145
CURRENT LIABILITIES		55,383,593,210		44,203,756,408
Trade and other payables		6,722,728,825		3,880,200,984
Markup / interest payable		704,627,594		429,965,379
Short term bank borrowings		12,466,228,393		9,898,080,298
Current portion of long term financing		350,403,555		254,892,774
Unclaimed dividend		28,883,316		28,941,755
Provision for taxation - income tax		6,271,705,939		4,088,207,649
		26,544,577,622		18,580,288,839
Working capital		28,839,015,588	25,623,467,569
Total capital employed		68,940,410,569	64,496,636,151
NON - CURRENT LIABILITIES
Long term financing		4,912,603,726		3,383,440,576
Deferred liabilities:
Deferred taxation		6,339,381,153		5,289,421,657
Staff retirement gratuity		1,418,271,679		1,373,340,363
CONTINGENCIES AND COMMITMENTS		12,670,256,558		10,046,202,596
4	-		-
Net worth		56,270,154,011	54,450,433,555
Represented by:
SHARE CAPITAL AND RESERVES
Share capital		3,105,069,950	3,105,069,950
Capital reserves		1,072,017,550	1,072,017,550
Revenue reserves		52,093,066,511	50,273,346,055
		56,270,154,011	54,450,433,555

The annexed notes form an integral part of these condensed interim financial statements.

Director

Director

Chief Financial Officer

06 THIRD QUARTERLY REPORT 2023

CONDENSED INTERIM STATEMENT OF

PROFIT OR LOSS (UNAUDITED)

For the period ended September 30, 2023

		Quarter ended September 30,	Nine months ended September 30,
		2023	2022		2023	2022
	Note	Rupees		Rupees	Rupees		Rupees
Sales - net		30,750,553,727	27,175,123,130		90,862,911,925	91,296,614,914
Cost of goods sold	5	(28,788,234,927)	(25,633,949,902)		(82,204,932,997)	(77,656,117,605)
Gross profit		1,962,318,800	1,541,173,228		8,657,978,928	13,640,497,309
Selling and distribution expenses		(180,486,267)		(158,156,772)		(533,006,970)		(408,991,152)
Administrative expenses		(563,316,060)		(533,801,022)		(1,662,246,208)		(1,414,924,512)
Other operating expenses		(49,952,732)		(59,577,821)		(391,567,447)		(819,453,486)
Finance cost		(497,041,986)		(78,534,380)		(1,067,252,697)		(208,112,427)
		(1,290,797,045)		(830,069,995)		(3,654,073,322)		(2,851,481,577)
		671,521,755	711,103,233		5,003,905,606	10,789,015,732
Other income		13,363,428	126,918,696		49,272,636	314,882,167
Profit before taxation		684,885,183	838,021,929		5,053,178,242	11,103,897,899
Provision for taxation		(626,409,610)	(194,241,415)		(3,233,457,786)	(4,656,914,063)
Profit for the period		58,475,573	643,780,514		1,819,720,456	6,446,983,836
Earnings per share - Basic and Diluted		0.19	2.07		5.86	20.76

The annexed notes form an integral part of these condensed interim financial statements.

Director

Director

Chief Financial Officer

IBRAHIM FIBRES LIMITED

07

CONDENSED INTERIM STATEMENT OF

COMPREHENSIVE INCOME (UNAUDITED)

For the period ended September 30, 2023

	Quarter ended September 30,	Nine months ended September 30,
	2023	2022	2023	2022
	Rupees	Rupees	Rupees	Rupees
Profit for the period	58,475,573	643,780,514	1,819,720,456	6,446,983,836
Other comprehensive income for the period	-	-	-	-
Total comprehensive income for the period	58,475,573	643,780,514	1,819,720,456	6,446,983,836

The annexed notes form an integral part of these condensed interim financial statements.

Director

Director

Chief Financial Officer

08 THIRD QUARTERLY REPORT 2023