Business Recorder
GOC (Pak) Limited (PSX: GOC) was incorporated in Pakistan as a private limited company in 1964 and was converted into a public limited company in 1986. The principal activity of the company is the manufacturing and sale of cricket balls, hockey sticks and other quality sports goods. Pattern of Shareholding As of June 30, 2025, GOC has a total of 7.349 million shares outstanding which are held by 447 shareholders. Associated companies, undertakings and related parties have the major stake of 47.59 percent in GOC followed by its directors, CEO, their spouse and minor children holding 28.30 percent shares. Local general public accounts for 17.92 percent shares of GOC while NIT and ICP own 4.30 percent shares. Around 1.33 percent of GOC’s shares are held by banks, DFIs and NBFIs and the remaining 0.55 percent are with the other local companies. Historical Performance (2019-25) The topline and bottomline of GOC show an asymmetrical pattern over the period under consideration. Both topline and bottomline registered decent growth in 2019, 2022 and 2023. However, 2020, 2021, 2024 and 2025 were gloomy where not only revenue and net profit terribly dropped but margins also considerably declined. A detailed breakdown of the financial performance of GOC over the years is given below. In 2019, GOC’s topline grew by 27.60 percent year-on-year to clock in at Rs. 305.08 million. This was the result of combination of better off-take and depreciation of Pak Rupee which made the export sales much dearer. While the export volumes of wooden hockey sticks, composite hockey sticks and accessories increased during the year, cricket balls posted a volumetric drop. Local sales also plunged during the year. Rise in the cost of raw materials coupled with high fuel and power charges drove the cost of sales up by 22.28 percent year-on-year in 2019. However, handsome volumes and favorable currency movement resulted in year-on-year growth of 37.9 percent in gross profit with GP margin of 36.76 percent in 2019 versus GP margin of 34 percent recorded in 2018. Operating expenses jumped up by 15.15 percent in 2019 on the back of inflation coupled with better branding and distribution strategies undertaken during the year. Other expense rose by 72.69 percent year-on-year in 2019 on account of increased provisioning for WPFF and generous donations. A significant support to the bottomline was provided by other income which multiplied by over 3029.74 percent in 2019 as the company wrote back its credit balances worth Rs.17.56 million and also because of stunning exchange gain. The result was a striking year-on-year rise of 140.34 percent in the operating profit while OP margin also jumped up from 13.27 percent in 2018 to 25 percent in 2019. GOC doesn’t have any bank loans on its balance sheet and is an entirely equity backed company. Finance cost only comprises of bank charges which increased by 25.53 percent year-on-year during 2019. The share of loss from Grays Leasing Limited, an associated company of GOC, also dropped by 55.60 percent during the year. The bottomline posted an impressive growth of 171.96 percent in 2019 to clock in at Rs.71.53 million in 2019 with EPS of Rs.9.73 versus EPS of Rs.3.58 recorded in 2018. NP margin also grew from 11 percent in 2018 to 23.45 percent in 2019. The subsequent two years were sluggish as GOC’s topline plummeted by 15.76 percent and 20.40 percent year-on-year in 2020 and 2021 respectively due to a drastic drop in sales volumes owing to the outspread of COVID-19. GP margin also shrank to 33.36 percent and 30.43 percent respectively in 2020 and 2021. Distribution expense and other expense also declined in both the years owing to lesser clearing and forwarding charges, low advertisement budget, lesser provisioning for WPFF and lesser donations. It is to be noted that administrative expense significantly increased by 30.92 percent in 2020 and then plunged by 21.16 percent in 2021. The increase in administrative expense in 2020 was the result of disbursement of bonus of Rs. 14.091 million. Other income didn’t prove to be encouraging in both the years. In 2020, other income fell by 73.46 percent year-on-year as the credit balances written back in 2019 had provided a high-base effect and also because of lesser net exchange gain due to massive drop in export volumes. In 2021, other income further slipped by 52.37 percent year-on-year as the company made net exchange loss during the year. Operating profit slid by 69 percent and 57 percent respectively in 2020 and 2021 with OP margin of 9.20 percent in 2020 which further nosedived to 4.97 percent in 2021. The share of loss from associate company expanded by 146.85 percent in 2020, however, turned to profit in 2021. The bottomline narrowed down by 73.60 percent and 69.68 percent respectively in 2020 and 2021. In 2020, net profit stood at Rs.18.88 million with EPS of Rs.2.57 and NP margin of 7.35 percent. Net profit further thinned down to Rs.5.72 million with EPS of Rs.0.78 in 2021. NP margin stood at a meager 2.80 percent in 2021, the lowest among all the years under consideration. In 2022, the topline made a comeback with year-on-year growth of 16.4 percent to clock in at Rs.238.13 million. This was because international sports got back on the track after COVID-19. Gross profit also improved by 30.33 percent year-on-year in 2022 as not only did the sales volume grow but exchange rate movement also played its part in boosting the revenue. GP margin burgeoned to 34 percent in 2022. Operating expense grew by 30.59 percent in 2022 on the back of rising inflation which drove up the salaries and wages and also because of higher clearing and forwarding charges on export sales. Other expense mounted by 266 percent in 2022 on account of higher provisioning for WPPF. Other income escalated by 3126.12 percent in 2022 as GOC recognized gain on the disposal of its fixed assets during the year. This provided tremendous growth impetus to operating profit which jumped by 914.92 percent in 2022. OP margin of 43.31 percent achieved by the company in 2022 was not only higher than its GP margin but also the highest mark ever seen by the company. Share of profit from associate company dropped by 50.69 percent during the year, however, the bottomline magnified by 1600.66 percent year-on-year to clock in at Rs.97.36 million in 2022 with EPS of Rs.13.25. NP margin stood at 40.89 percent in 2022. In 2023, GOC’s net sales boasted a tremendous year-on-year growth of 190.36 percent to clock in at Rs. 691.44 million. This was on account of robust export volumes of wooden hockey sticks, composite hockey sticks, cricket balls and other products. Pak Rupee depreciation also proved to be a boon for the company and propelled its topline. During the year, the company made concentrated efforts to increase its market share in the composite sticks market. Cost of sales hiked by 178.79 percent year-on-year on account of high inflation, Pak Rupee depreciation as well as high energy and fuel cost. However, better volumes and prices drove the gross profit up by 212.75 percent in 2023 with GP margin flourishing to 36.70 percent. Distribution expense surged by a massive 139.78 percent in 2023 primarily due to a spike in clearing and forwarding charges, export development surcharge as well free samples cost. Administrative expense also escalated by 44.80 percent year-on-year on account of higher payroll expense as well as travelling and conveyance charges. While GOC made a splendid exchange gain of Rs.26.66 million in 2023, high-base created by the gain on disposal of fixed assets in the previous year pushed other income down by 62.83 percent in 2023. Operating profit improved by 58.52 percent year-on-year in 2023, however, OP margin considerably fell to 23.64 percent. Bank charges grew by 219.35 percent in 2023, however, didn’t produce much of a difference in GOC’s bottomline which outshone the previous year by 57.92 percent to clock in at Rs.153.76 million. EPS rose to Rs.20.92 in 2023 – the highest ever EPS posted by the company. However, NP margin plunged to 22.24 percent in 2023. In 2024, GOC’s net sales slumped by 16.31 percent year-on-year to clock in at Rs.578.67 million. Exports of cricket balls, wooden and composite hockey sticks considerably dropped during the year. Moreover, stability of Pak Rupee also squeezed the sales in Pak Rupee terms. Cost of sales shrank by 16.74 percent in 2024 due to stable local currency. Gross profit dwindled by 15.56 percent in absolute terms, however, GP margin slightly ticked up to clock in at 37 percent. Distribution expense slid by 44.52 percent in 2024 due to lesser clearing & forwarding charges and export development surcharge incurred during the year on the back of thinner sales volume. Administrative expense mounted by 22.84 percent in 2024 due to higher payroll expense on account of inflationary pressure and also because the company expanded its workforce from 131 employees in 2023 to 139 employees in 2024. Travelling & conveyance charges also escalated during the year due to elevated prices of POL products. Other expense surged by 41.44 percent in 2024 primarily due to net exchange loss incurred during the year. Conversely, other income slid by 38.49 percent in 2024 as the company didn’t record exchange gain during the year. Operating profit eroded by 34.86 percent in 2024 with OP margin falling down to 18.40 percent. Finance cost plummeted by 58.97 percent in 2024 due to reduced bank charges owing to lesser export transactions made during the year. Share of profit of associated company, Grays Leasing Limited, strengthened by 109.81 percent in 2024. Net profit tumbled by 35.71 percent to clock in at Rs.98.85 million in 2024 with EPS of Rs.13.45 and NP margin of 17.10 percent. In 2025, GOC’s net sales further deteriorated by 18.38 percent to clock in at Rs.472.32 million. While export sales still accounted for over 96 percent of the company’s overall sales mix, it fell by 20.76 percent to clock in at Rs. 453.620 million in 2025. This was due to decline in the sale of wooden and composite hockey sticks in 2025. Conversely, local sales mounted by overall 200 percent to clock in at Rs.18.23 million. Besides, thinner volumes, stability of Pak Rupee also played its role in squeezing the export sales of the company in Pak Rupee terms. Lesser absorption of fixed cost due to low capacity utilization resulted in 23.90 percent fall in gross profit in 2025 with GP margin falling down to 34.52 percent. Distribution expense surged by 29.24 percent in 2025 due to higher clearing & forwarding charges, increased salaries of sales force, rigorous advertising & promotion drives and free sample charges. The company made sound investment in R&D to increase its market share in composite sticks market. In the pursuit, the company distributed free samples to international customers to get their feedback and work on the possible areas of improvement. Administrative expense ticked up by 1.91 percent in 2025 due to higher payroll expense as the company expanded its workforce from 139 employees in 2024 to 153 employees in 2025. Higher payroll expense was greatly offset by lower travelling & conveyance and vehicle running charges, resulting in a minor movement in administrative expense. Other expense surged by 67.57 percent in 2025 due to sales tax receivable written off during the year and also because of generous donations. Other income dipped by 4.18 percent in 2025 due to thinner dividend income. All these factors translated into 65.72 percent descent in GOC’s operating profit in 2025 with OP margin falling down to 7.73 percent. Bank charges ticked up by 9.34 percent in 2025. Share of profit from associate company, Grays Leasing Limited fell by 59.10 percent in 2025. GOC recorded net profit of Rs.25.83 percent, down 73.87 percent year-on-year. This translated into EPS of Rs.3.51 and NP margin of 5.47 percent in 2025. Recent Performance (9MFY26) GOC’s topline which had been falling for the past two years registered recovery with 6.76 percent year-on-year growth in 9MFY26. This culminated into net sales of Rs.395.373 million in 9MFY26. Due to non-availability of shipping lines, some of the consignments of hockey sticks from last year were shipped in FY26, resulting in tremendous sales in the first two quarters of FY26. Conversely, the sales receded in the 3rd quarter. Cost of sales mounted by 5.49 percent in 9MFY26. This resulted in 9.59 percent improvement in gross profit in 9MFY26 with GP margin clocking in at 31.84 percent versus GP margin of 31 percent recorded in 9MFY25. This was due to cost cutting strategies adopted by the company, better sales mix and increased sales volume. Distribution expense escalated by 7.34 percent in 9MFY26 due to higher export volumes as well as increased advertising and promotion charges. Administrative expense also ticked down by 4.51 percent in 9MFY26 likely due to revision of minimum wage rate. 1.73 percent uptick in other expense in 9MFY26 appears to be the result of higher provisioning done for WWF and WPPF. Other income fell by 43.73 percent during the period under review most likely on the back of monetary easing which squeezed the income on investments. The company’s bank balances and investment portfolio also considerably shrank in 9MFY26. Operating profit multiplied by 10.45 percent in 9MFY26 with OP margin clocking in at 14.24 percent versus OP margin of 13.77 percent recorded in 9MFY25. Finance cost (bank charges) dwindled by 28.15 percent in 9MFY26. Share of profit from associate company (Grays Leasing Limited) also fell by 93.67 percent in 9MFY26. GOC posted 10.73 percent higher net profit to the tune of Rs.47.696 million in 9MFY26. This translated into EPS of Rs.6.49 in 9MFY26 versus EPS of Rs.5.86 posted in 9MFY25. NP margin strengthened from 11.63 percent in 9MFY25 to 12 percent in 9MFY26. Future Outlook The company is actively working on diversifying its product base and has started producing a wide range of composite sticks which will further support its financial performance. The company also expects significant growth in the demand of cricket balls locally as well as from Australia, South Africa and England. GOC’s increased focus on R&D as well as advertising and distribution to grab greater market share will yield return in terms of robust sales volume.
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