SEPL declares Rs9 dividend

July 30, 2026 (MLN): Security Papers Limited (PSX: SEPL) reported a 40% decline in its net profit for the fiscal year ended June 30, 2026, recording Rs907.16m compared to Rs1.52bn in the preceding year.

Alongside the financial results, the company announced a cash dividend of Rs9 per share.

Reflecting this bottom-line contraction, the company's basic and diluted earnings per share (EPS) fell to Rs15.31 from Rs25.72 in FY25.

The drop in earnings was primarily triggered by a top-line contraction combined with rising direct production costs.

 SEPL’s net revenue from contracts with customers posted a 7% year-on-year decrease, falling to Rs7.31bn from Rs7.87bn.

Meanwhile, the cost of sales ticked up by 1% to Rs5.72bn.

Because direct costs rose despite lower sales volume, the company's gross profit contracted sharply by 28%, settling at Rs1.59bn compared to Rs2.2bn in the prior year.

On the operational front, overheads grew modestly as administrative expenses rose by 5% to Rs522.36m.

The company also faced a 25% drop in "other income," which fell to Rs688.03m from Rs915.83m in FY25.

Although "other expenses" declined by 29% to Rs146.01m, the drop in secondary income and gross margins dragged pre-tax performance down.

Below the operating line, finance costs doubled to Rs6.75m (up 101%), bringing the profit before taxation to Rs1.60bn, representing a 34% drop from last year.

The company absorbed a 22% lower net taxation expense amounting to Rs690.90m (down from Rs889.98m in FY25). Supported by the lighter tax impact, Security Papers Limited securely closed the fiscal year with its final net profit at Rs907.16m.

Copyright Mettis Link News