February 14, 2020 (MLN): Al-Ghazi Tractors Limited has announced net profits of Rs. 977 million (EPS: Rs. 16.87) for the year ended December 31, 2019, i.e. around 60% lower than the earnings reported in last year.
While the Company did not announce any Final Dividend, it did pay an Interim Dividend of Rs. 15 per share i.e. 300%.
The bottom-line earnings of the company fell by a substantial margin owning to a 27% decline in revenue. Going by the explanation provided by a few brokerage houses, the sales revenue fell on the back of lower volumes and inability of the company to pass on the impact of cost pressures on consumers.
The gross profit of the company dropped by nearly 45% due to higher raw material cost as well as lower pricing power.
According to a research report by Intermarket Securities, the finance cost surged by twice the amount reported in last year, as the liquidity stuck in Government refunds forced the company to raise short-term debt.
Nonetheless, the company got some breather in the form of a 71% fall in income tax expense.
Profit and Loss Account for the Year Ended December 31, 2019 (Rupees '000) | |||
|---|---|---|---|
| Â | 2019 | 2018 | % Change |
Sales | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 13,992,388 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 19,342,677 | -27.7% |
Cost of goods sold | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (11,447,672) | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (14,707,038) | -22.2% |
Gross Profit | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2,544,716 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 4,635,639 | -45.1% |
Distribution cost | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (263,946) | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (240,381) | 9.8% |
Administrative expenses | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (296,763) | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (312,149) | -4.9% |
Other income | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 61,423 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 61,902 | -0.8% |
Other operating expenses | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (298,443) | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (284,608) | 4.9% |
Finance cost | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (398,463) | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (125,568) | 217.3% |
Profit before taxation | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,348,524 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3,734,835 | -63.9% |
Taxation | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (370,872) | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (1,282,321) | -71.1% |
Profit after taxation | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 977,652 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2,452,514 | -60.1% |
Earnings per share – Basic and diluted (Rupees) | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 16.87 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 42.31 | -60.1% |
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