Baluchistan Wheels sees 5.71% drop in profit

February 04, 2025 (MLN): Baluchistan Wheels Limited (PSX: BWHL) earned a profit after tax of Rs114.93 million [EPS: Rs8.62] for the half-year ended December 2024, a decrease of 5.71% compared to last year.

Along with the results, the company announced an interim cash dividend of Rs6 per share for the second quarter ended December 31, 2024, representing 60%.

The company’s turnover for the period increased by 10.92%, reaching Rs1.14 billion compared to Rs1.02bn in the same period of 2023.

However, the cost of sales also saw a rise of 12.37%, which led to an increase in the gross profit to Rs246.04mn from Rs232.12mn in the prior year.

On the expenses front, distribution costs dropped 5.26% to Rs36.45mn, while administrative expenses increased by 7.28% to Rs80.15mn. Other expenses rose by 23.15% to Rs15.08mn.

 The company also significantly reduced its finance costs by 51.83% to Rs1.75mn, reflecting the improved financial standing.

Total operating expenses for the half-year stood at Rs133.43mn, up 3.38% compared to last year.

However, other income surged by 30.82% to Rs81.29mn, boosting the overall profitability before tax.

The company's profit before tax grew by 16.27% to Rs191.77mn, compared to Rs164.93mn last year.

However, taxation expenses saw a sharp rise of 78.53%, totaling Rs76.84mn, mainly due to higher current and prior taxes.

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