Tariq Glass Industries Reports 74% Surge in FY24 Earnings, No Dividend Issued

Lahore: Tariq Glass Industries Limited (TGL) convened a corporate briefing session today to review its FY24 results and future outlook, revealing a significant 74% year-on-year growth in earnings. Despite this robust performance, the company did not declare a dividend for the fiscal year, citing increased pressures on working capital and inventory.

According to JS Global, the growth in TGL’s net earnings primarily stemmed from strategic price adjustments to mitigate inflationary impacts and a one-time gain from transactions involving investments and inventory sold to Balochistan Glass Ltd (BGL). The company’s revenue from float glass products grew by 5%, with local sales revenue up by 8% year-over-year, while tableware saw a modest 2% increase in revenue, boosted significantly by a 24% jump in exports.

The session detailed that domestic demand for float glass paralleled weak trends in the broader construction materials market, leading to a 6% decline in packed glass production. Operational challenges included the shutdown of one of the two furnaces for float glass during the period. Looking ahead, TGL’s management anticipates continuing challenges in the construction sector for the next 1 to 1.5 years, exacerbated by restrictions on non-filers purchasing property which could dampen construction activity further.

TGL’s diversification into the pharmaceutical glass bottled segment through its 42% stake in BGL was also highlighted. BGL has resolved its initial operational issues and, with bank financing in place, expects to normalize operations pending stable gas supply.

In response to potential disruptions from new IMF guidelines on gas supply to captive power plants, TGL has proactively sought alternatives. This includes a new agreement with Universal Gas Distribution Company for LNG supply and the installation of a 2.5 MW solar plant to enhance energy self-sufficiency. These moves underscore TGL’s strategic pivot towards more sustainable energy sources amid concerns about the reliability of the national power grid.

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