August 23, 2024 (MLN): Dawood Hercules Corporation Limited (PSX: DAWH) recorded a decrease of 38.5% in its profitability, clocking in its profit after tax at Rs3.83 billion [EPS: Rs7.96] in Q2 CY24, compared to a profit of Rs6.22bn [EPS: Rs12.93] in the same period last year (SPLY).
Along with the results, the Board of Directors (BoD) has also recommended an interim cash dividend of Rs3 per share. This is in addition to the interim dividend already paid at Rs5 per share.
The profit and loss account shows that the company's return on investments decreased by 44% to Rs5.21bn, compared to Rs9.3bn in Q2 CY23.
However, the cost of sales rose by a greater proportion than sales, which worsened the gross profit by 44.6% to Rs5.13bn in Q2 2024.
Accordingly, the gross margins worsened to 98.6% as compared to 99.5% in SPLY.
On the expense side, the company's levy fell 18.7% YoY to Rs108.94m.
During the period under review, other income fell by 31.5% to stand at Rs18.07m in Q2 2024 as compared to Rs26.39m in SPLY.
The company’s finance cost shrunk 98.6% and stood at Rs1.69m as compared to Rs123.04m in SPLY.
On the tax front, the company paid a lower tax worth Rs1.21bn against the Rs2.8bn paid in the corresponding period of last year, depicting a fall of 56.8%.
Despite reduced outflows on the expenditure side, including expenses, taxation, and finance costs, the substantial drop in returns from investments led to a lower bottom line.
| Unconsolidated (un-audited) Financial Results for quarter ended June 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Jun 24 | Jun 23 | % Change | |
| Return on investments – net | 5,205,923 | 9,301,890 | -44.03% |
| Administrative expenses | (73,923) | (46,047) | 60.54% |
| Gross Profit/ (loss) | 5,132,000 | 9,255,843 | -44.55% |
| Levy | (108,944) | (134,004) | -18.70% |
| Other Income | 18,069 | 26,385 | -31.52% |
| Finance Cost | (1,689) | (123,038) | -98.63% |
| Profit/ (loss) before taxation | 5,039,436 | 9,025,186 | -44.16% |
| Taxation | (1,208,943) | (2,800,885) | -56.84% |
| Net profit/ (loss) for the period | 3,830,493 | 6,224,301 | -38.46% |
| Basic earnings/ (loss) per share | 1.57 | (0.13) | – |
Amount in thousand except for EPS
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Posted on: 2024-08-23T15:34:22+05:00
