October 29, 2020 (MLN): Al Gazi Tractors Limited (AGTL) has reported 31% YoY decline in net profits for the nine months period ended on September 30th, 2020 to Rs 889 million against the profits of Rs 1.28 billion earned in the corresponding period of last year.
The earnings per share clocked in at Rs 15.34 compared to Rs 22.24 for 9MCY19.
During the period, the net revenues of the company went down by 27% YoY to Rs 9 billion mainly due to 34% YoY decline in sales volumes from 14,308 units to 9,419 units.
The gross margins of the company rose to 1ppt from 22% to 21% owing to upward revision of prices of tractors in July.
Furthermore, the company witnessed 12% YoY decline in other income on account of low interest income from saving accounts.
On the expense side, the Distribution expenses decreased by 6% YoY, while admin expenses declined by 8.6% YoY. Other expenses rose a sharp 32.4% YoY. Moreover, the company’s finance costs declined notably by 55% YoY. This is potentially due to low interest rates, decline in short term borrowings and potential increase in liquidity due to refunds from the government.
Effective tax rate clocked in at 30% compared to 29% last year.
Profit and Loss Account for the Nine Months Ended September 30th, 2020 (Rupees '000) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Sales | 9,183,044 | 12,541,635 | -26.8% |
Cost of goods sold | (7,204,521) | (9,866,541) | -27.0% |
Gross Profit | 1,978,523 | 2,675,094 | -26.0% |
Distribution cost | (176,261) | (186,954) | -5.7% |
Administrative expenses | (268,703) | (293,966) | -8.6% |
| 1,533,559 | 2,194,174 |
|
Other income | 45,004 | 51,043 | -11.8% |
Other operating expenses | (179,908) | (135,850) | 32.4% |
| 1,398,655 | 2,109,367 |
|
Finance cost | (130,232) | (291,100) | -55.3% |
Profit before taxation | 1,268,423 | 1,818,267 | -30.2% |
Taxation | (379,406) | (529,325) | -28.3% |
Profit after taxation | 889,017 | 1,288,942 | -31.0% |
Earnings per share – Basic and diluted (Rupees) | 15.34 | 22.24 | -31.0% |
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