Azgard Nine reports 32% decline in 1HFY25 profit to Rs200mn

February 27, 2025 (MLN): Azgard Nine Limited (PSX: ANL) has reported a 32% decline in its profit after tax, amounting to Rs200 million for the half-year ended December 31, 2024, compared to Rs296mn in the same period of 2023.

Basic earnings per share (EPS) for the period stood at Rs0.41, down from Rs0.6 in the corresponding period of 2023.

The decline was primarily driven by rising costs and increased finance expenses despite a significant surge in sales revenue.

ANL’s sales revenue grew by 30%, reaching Rs22 billion compared to Rs17bn in the previous year.

However, the cost of sales also increased by 31%, amounting to Rs19bn, which led to a gross profit of Rs2.6bn, reflecting a 23% year-on-year increase.

The company’s operating profit stood at Rs1bn, showing a modest growth of 9% from the previous year.

However, selling and distribution expenses rose sharply by 48.6%, reaching Rs1bn, while administrative expenses increased by 10.5% to Rs494.4mn.

Finance costs remained a significant burden, climbing 22.7% to Rs619mn, primarily due to higher interest rates and increased borrowings.

Other income declined 4.6% to Rs241mn, while other expenses fell 8% to Rs. 26.7mn.

The company’s profit before income taxes declined by 7.4%, amounting to Rs369.7mn, while provision for income taxes surged by 65% to Rs. 169.7mn, further impacting net profitability.