November 22, 2023 (MLN): Biafo Industries Limited (PSX: BIFO), a leading manufacturer of commercial explosives and blasting accessories stands tall with a promising outlook as it poised strategically to seize burgeoning opportunities within the upcoming wave of large-scale mining projects in Pakistan.
In order to align perfectly with its vision to maximize its market share, the company is actively pursuing Infrastructure Development projects in the country, the management of the company informed during a corporate Briefing Session (CBS) today.
These projects include CPEC projects like ML-1, Hydropower projects such as Kohala Hydropower Project, Diamer-Bhasha Hydropower Project and Balakot Hydropower Projects.
During the CBS, the management also highlighted that BIFO is currently focusing on expansion in the export market by entry into African Market. In addition, the company also eyeing to tap Eastern European countries.
The company has targeted Africa as the niche market for export and Successful supplies have been made to North Sudan during the year, however, due to the eruption of war and disruption of the banking system in Sudan, receipt of Export proceeds were delayed.
Upon inquiring, the management clarified that the transfer of funds has been initiated and management is confident that payment will be received soon.
As part of the company’s strategy, the management will continue to seek to promote exports and explore Markets in other countries including other African Countries.
With regards to the Barrick Gold, the management was of the view that there is a huge potential for the company in the Barrick Gold project. Thus, the management is actively following this project.
Discussing the financial performance, the management of the company underlined that the company recorded net sales revenue of Rs2.71 billion as compared to the previous year’s revenue of Rs1.66bn. Gross profit for the year increased by 103% to Rs1.18bn (2021-22: Rs581.98mn). The company earned a net profit after tax of Rs607.68mn (2021-22: Rs247.73mn) resulting in earnings per share of Rs13.10 (2021-22: Rs5.34 restated).
Profitability remained stable despite the massive currency devaluation and high cost of imported raw materials and supply chain issues, especially during the period under review.
“The future outlook of the company is quite promising that will lead the profitability of the company to make new heights,” the management said.
BIFO is engaged in the manufacturing of commercial explosives and blasting accessories, including detonators and other materials since 1988.
It offers Tovex Water Gel explosives, which include Blasters, Breakers, Seismic explosives, Coal miners, Prespliters and Powder explosives and various types of Blasting accessories.
On the production side, the company also produces blasting accessories for explosives from technology initially obtained from Hanwha Group of South Korea.
However, with continuous in-house research and development, Biafo has successively developed other new products as per Market demand.
A significant increase has been observed in supplies to the oil and gas and mining sectors.
Copyright Mettis Link News
Posted on:2023-11-22T12:18:00+05:00
41649
