May 5, 2021 (MLN): Al-Ghazi Tractors Limited (AGTL) has revealed its financial results for the year ended on December 31, 2020 today, as per which the company's net profits locked in at Rs1.35billion (EPS: Rs23.28), depicting a rise of 38% YoY when compared to Rs997.65million (EPS Rs16.87) in the same period last year (SPLY).
In conjunction with the results, the company also announced a cash dividend of Rs21.39 per share for the period mentioned above.
The upsurge in AGTL’s profitability was mainly accredited to a decline in financial cost and improved gross margins.
On the contrary, the company witnessed a decline in its top-line by 14.7% YoY to stand at Rs11.94bn as compared to Rs13.9bn reported in the SPLY. Likewise, the cost of sales fell by 20% to clock in at Rs9.16bn compared to the corresponding period last year potentially due to procuring parts at cheaper rates, Intermarket Securities (IMS) report said.
This translates into the company’s profitability as the gross margins for the period under review stood at 23% as compared to 18% in SPLY. The upsurge may be attributable to a reduction in the price of inputs.
On the cost front, the distribution cost of the company fell by 16% YoY to stand at Rs222mn, mainly as a result of a decline in volumetric sales. Similarly, the non-core expenses reported a decline of 29.3% YoY which provided a cushion to the earnings during the period under review. On the other hand, the company witnessed an increase in administrative expenses by 8.7% YoY as compared to the SPLY.
Meanwhile, the company registered a decline of 63.4% YoY in finance cost to stand at Rs145.79mn during the said period on the back of lower interest rates, which supported the bottom-line growth.
Further, other income came down by 4.3% YoY to Rs58.80mn due to the small amount of cash balance in view of IMS.
On the tax front, the effective tax rate clocked in at 30% during the said period compared to 28% recorded in the SPLY.
|
Profit and Loss Account for the year ended on December 31st, 2020 (Rupees '000) |
|||
|---|---|---|---|
|
|
Dec-20 |
Dec-19 |
% Change |
|
Revenue from contracts with customers |
11,935,172 |
13,992,388 |
-14.7% |
|
Cost of sales |
(9,164,670) |
(11,447,672) |
-19.9% |
|
Gross Profit |
2,770,502 |
2,544,716 |
8.9% |
|
Distribution cost |
(221,904) |
(263,946) |
-15.9% |
|
Administrative expenses |
(322,675) |
(296,763) |
8.7% |
|
|
2,225,923 |
1,984,007 |
12.27% |
|
Other income |
58,798 |
61,423 |
-4.3% |
|
Other operating expenses |
(211,025) |
(298,443) |
-29.3% |
|
|
2,073,696 |
1,746,987 |
18.7% |
|
Finance cost |
(145,789) |
(398,463) |
-63.4% |
|
Profit before taxation |
1,927,907 |
1,348,524 |
43.0% |
|
Income tax expense |
(578,250) |
(370,872) |
55.9% |
|
Profit after taxation |
1,349,657 |
977,652 |
38.1% |
|
Earnings per share – Basic and diluted (Rupees) |
23.28 |
16.87 |
38.0% |
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