Ghani Gases Limited gross margin mounts to 31.5pc
LAHORE: Ghani Gases Ltd GGL experienced a growth of more than triple in revenue with gross margin mounting to 31.5 percent in 9MFY11 from 1.4 percent in the corresponding period of last year. To sustain considerable growth in earnings, GGL in the current period thrown its golden cards in the form of Calcium Carbide which management expects it to yield 25-30 percent of the total revenue in following years. GGL has set up a boosting system to improve its operating efficiency and better utilization of plant facilities which can be evident by ratio of cost of sales to net sales which diminished to 68.5 percent. Furthermore, GGL recently enhanced the fleet of mobile tankers to ensure smooth supply of product to meet the demand/supply gap with an expectation of greater profitability and enhancement of competitive position in gases industry.
The entrances of GGL, not only surprised its potential customers and market viewers but it strived to give a tremendous competitive fight to its well stabilized competitors. Being its first profitable financial year GGL has developed a good name in the country’s gases industry by capturing substantial size of market in a short period.