BYCO revives profits after two-year slump

September 24, 2021 (MLN): BYCO Petroleum Pakistan Limited has returned to profitability following two years of losses. In the latest financial results of FY21 ended on June 30, 202, the company made a net profit of Rs2.94 billion against the net loss of Rs2.94bn reported in a previous fiscal year.

This has translated into earnings per share-basic of Rs0.55 during FY21 against the loss per share of Rs0.55 in FY20

This swing in bottom-line in FY21 is due to improvement in gross margins (up by 3.86% YoY), thanks to lower cost of sales while the other major factor is lower finance costs amid a lower interest rate regime.

Pursuant to the financial statement provided to PSX, the company witnessed an 18.3% decrease in net sales to Rs142bn due to a decline in international oil prices in 2020 amid a pandemic.  However, the cost in sales lessened the impact of it by a decrease of 21.5% which led the gross margins to increase considerably to 5.11% from 1.24% amid better inventory management.

On the cost front, the administrative expenses surged by 7.6% to stand at Rs1.01bn while selling and distribution cost remained flat.

Meanwhile, the company also reported a reduction of 40% YoY in finance cost to Rs2.42bn in FY21 due to a lower interest rate regime, which supported the bottom-line growth. On the other hand, other income went down by 8.4% YoY to Rs1.26bn.

Notably, the company paid taxes of Rs74.5mn during the said period when compared to the tax incentive of Rs233mn received in the previous year.

Copyright Mettis Link News