August 29, 2023 (MLN): Avanceon Limited (PSX: AVN) 's profitability increased by 27.31% YoY in 1HCY23, clocking in its profit after tax at Rs1.17 billion [EPS: Rs3.29] compared to a profit of Rs919.31m [EPS: Rs2.6] in the same period last year (SPLY).
Going by the results, the company's top line soared by 2.56x YoY to Rs5.9bn as compared to Rs2.31bn in SPLY.
The cost of sales also rose by 2.66x YoY but was lesser than proportionate to sales increase, which improved the gross profit by 2.33x YoY to Rs1.71bn in 1HCY23.
In addition, during the review period, other income soared by 5.61x YoY to stand at Rs5.52bn in 1HCY23 as compared to Rs984.84 million in SPLY.
On the expense side, the company observed an abnormal rise in administrative and selling expenses by 9.48x YoY while other expenses rose by 11.68% YoY to clock in at Rs5.9bn and Rs3.32m respectively during the review period.
The company’s finance costs inflated by 41.90% YoY and stood at Rs117.74m as compared to Rs82.98m in 1HCY23, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs40.7m against the Rs91.16m paid in the corresponding period of last year, depicting an increase of 55.36% YoY.
Consolidated (un-audited) Financial Results for half-year ended 30 June, 2023 (Rupees in '000)
