Avanceon Limited records 2.51x YoY increase in net profit for 1QFY23

May 31, 2023 (MLN): Avanceon Limited (PSX: AVN)'s profitability increased significantly by 2.51x YoY in 1QFY23, clocking in its profit after tax at Rs823.06m [EPS: Rs2.52] as compared to a profit after tax of Rs326.86m [EPS: Rs1] in the same period last year (SPLY).

In the filing, the company’s top line declined by 19.45% YoY to Rs323.79m as compared to Rs401.98m in SPLY.

Although, the cost of sales fell by 22.12% YoY but was lesser than proportionate to sales decline which worsened the gross profit by 14.44% YoY to Rs119.36m in 1QFY23.

However, during the review period, other income inflated by 3.19x to stand at Rs837.09m in 1QFY23 as compared to just Rs261.74m in SPLY.

This surge in other income helped the company improve its profitability significantly.

On the expense side, the company observed an increase in admin & selling expenses by 52.14% YoY and other expenses by 50.32% YoY to clock in at Rs68.47m and Rs1.65m respectively during the review period.

The company’s finance costs surged by 74.18% YoY and stood at Rs34.95m as compared to Rs20.06m in 1QFY22, mainly due to higher interest rates.

On the tax front, the company paid a significantly higher tax worth Rs28.31m against the Rs8.21m paid in the corresponding period of last year, depicting a surge of 3.44x YoY.

Copyright Mettis Link News