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.
|
Consolidated Profit and Loss Account for the Year ended June 30, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
Turnover – net |
142,150,298 |
173,898,930 |
-18.26% |
|
Cost of sales |
(134,892,850) |
(171,739,740) |
-21.46% |
|
Gross profit |
7,257,448 |
2,159,190 |
236.12% |
|
Administrative expenses |
(1,005,045) |
(934,232) |
7.58% |
|
Selling and distribution expenses |
(576,360) |
(578,186) |
-0.32% |
|
Other expenses |
(1,498,664) |
(1,226,414) |
22.20% |
|
Other income |
1,256,589 |
1,371,541 |
-8.38% |
|
|
(1,823,480) |
(1,367,291) |
33.36% |
|
Operating profit |
5,433,968 |
791,899 |
586.19% |
|
Finance cost |
(2,416,361) |
(3,960,395) |
-38.99% |
|
Profit/ (Loss) before taxation |
3,017,607 |
(3,168,496) |
– |
|
Taxation |
(74,468) |
233,230 |
– |
|
Profit/ (Loss) after taxation |
2,943,139 |
(2,935,266) |
– |
|
Earnings/ (Loss) per share – basic (rupees) |
0.55 |
(0.55) |
– |
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