AgriAutos Industries posts massive decline in profits in 9MFY20

April 22, 2020(MLN): Agriautos Industries Limited (AGIL) has announced its financial results for the nine months ended March 31, 2020, as per which the company has observed the enormous decline in its net profits by around 87% YoY to Rs 96.55 million with EPS clocked in at Rs 3.35.

During the period under review, the company’s gross profits plunged by 67% YoY due to decline in sales revenue despite 32% decrease in cost of sales, shrinking gross margins from 17% to 9%.

On expense side,  the company witnessed an increase in its major expense heads as administrative expenses went up by 7.48% YoY from Rs. 178 million to Rs. 192 million while the distribution cost dropped by 38% YoY  to Rs 64 million.

On the other hand,  the other income of the company decreased by 14% YoY to Rs 42 million. Meanwhile, the finance cost ballooned by 4.5 times higher than YoY to clock in at Rs 1.95 million which further injured owing to higher rate of interest.

More notably, the tax expenses of the company plummeted by 53.55% YoY, providing the cushion to its earnings.                                

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