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Bestway Cement’s quarterly profits slip despite reduced tax expenses

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 October 23, 2018 (MLN): Bestway Cement Limited’s quarterly profits have undergone a decline of 24.7% for the period ended September 30, 2018, as the profits dropped from Rs.2.9 billion to Rs.2.2 billion over the corresponding period of last year.

As per the company’s official financial earnings report, the revenues during the quarter slipped by 7% while due to a slight increment in cost of sales, gross profits dropped by a larger margin of 22% over the year.

While administrative expenses along with non-core expenses registered a significant decline worth around Rs.440 million in total, their positive impact was nullified due to a negative impact of similar magnitude from higher finance costs and lower income from share of profit of equity-accounted investees.

Although the company’s income tax expenses dropped significantly by 31%, a drop in profits could not be prevented.

Bestway has also reported its basic and diluted earnings per share at Rs.3.79 per share, down from Rs.5.03 per share.

Apart from this, in the company’s Board of Directors meeting, the board recommended an interim cash dividend at Rs.2 per share (20%).

 

Financial Results for the quarter ended September 30th 2018 ('000 Rupees)

 

Sep-18

Sep-17

% Change

Gross turnover

                     17,411,636

                     18,665,411

-6.72%

Rebates and discounts

                        (505,585)

                        (541,521)

-6.64%

Sales tax and excise duty

                     (5,017,363)

                     (5,210,166)

-3.70%

Revenue

                     11,888,688

                     12,913,724

-7.94%

Cost of Sales

                     (8,093,298)

                     (8,042,299)

0.63%

Gross profit

                       3,795,390

                       4,871,425

-22.09%

Other income

                             20,311

                             14,258

42.45%

Selling and distribution expenses

                        (407,630)

                        (314,352)

29.67%

Administrative expenses

                        (194,576)

                        (559,362)

-65.21%

Other expenses

                        (193,954)

                        (268,825)

-27.85%

Operating profit

                       3,019,541

                       3,743,144

-19.33%

Net finance costs

                        (324,355)

                        (170,880)

89.81%

Share of profit of equity-accounted investees, net of tax

                           280,345

                           470,917

-40.47%

Profit before tax

                       2,975,531

                       4,043,181

-26.41%

Income tax expense

                        (717,764)

                     (1,046,720)

-31.43%

Profit 

                       2,257,767

                       2,996,461

-24.65%

Earnings per share – basic and diluted (Rupees)

                                  3.79

                                  5.03

-24.65%

 

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Posted on: 2018-10-23T10:09:00+05:00

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