BIFO Reports Strong FY23 Performance, Eyes Expansion in Mining and Export Sectors

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General

BIFO Reports Strong FY23 Performance, Eyes Expansion in Mining and Export Sectors

November 22, 2023

Karachi, BIFO held an analyst briefing today to discuss its financial performance for the fiscal year 2023 (FY23) and to outline its future strategies. The company highlighted a significant increase in earnings and its expanding role in the mining and export sectors.

According to AKD Research, BIFO's earnings in FY23 reached PkR13.1 per share, a substantial increase from PkR5.34 per share in the same period last year (SPLY). This growth is primarily attributed to an increase in sales volumes and improvement in gross margins. A notable development in FY23 was the doubling of the company's exports, largely due to supplies made to mining ventures in Baluchistan, such as Duddar and Saindak, which are classified as exports due to their location in export processing zones.

Despite ongoing interactions with the Thar coal mining venture, BIFO has not yet realized significant progress as Thar primarily uses imported products. However, the company is actively engaging with other coal and salt mining projects in Pakistan and upcoming ventures like Natural Resources (Pvt) Ltd. (NRL). Furthermore, BIFO is pursuing opportunities in the China-Pakistan Economic Corridor (CPEC) infrastructure development and hydropower projects to enhance its market share. The management also mentioned being in touch with the local office for the Reko Diq mining project, which could significantly boost the company's volumes if it materializes.

Efforts to enhance capacity utilization include exploring export opportunities in Africa and Europe. BIFO successfully made supplies to North Sudan in the previous year, although the receipt of export proceeds was delayed due to war in the region. The management expects to receive these payments soon.

Around 70-80% of BIFO's raw materials are currently imported. The company is striving to increase reliance on local resources to reduce dependency on imports without compromising the quality of finished products. Looking ahead, the management anticipates substantial growth in both the company's top line and profitability.