October 25, 2022 (MLN): Dawood Hercules Corporation Limited has reported a profit after tax (PAT) worth Rs28 billion [EPS: Rs6.30] for the nine months period ended on September 30, 2022, down by 29% YoY compared to the profit worth Rs39.3bn [Rs15.42] earned in 9MCY21.
Despite the notable decline in earnings, the board of directors has announced an interim cash dividend for the quarter that ended September 30, 2022, at Rs6 per share i.e. 60%. This is in addition to the interim dividend already paid at Rs9 per share i.e. 90%.
According to the financial statement sent to PSX, the company saw a 20.14% YoY improvement in net sales to stand at Rs268.7bn while the cost of sales increased by 23% YoY to clock in at 188bn in 9MCY22.
Resultantly, the gross margin of the company dropped to 30% YoY compared to 31.55% YoY in 9MCY21.
On the expense side, the selling expense remained flat at Rs5.48bn whereas administrative expenses saw a surge of 48% YoY to clock in at Rs7.55bn in 9MCY22.
DAWH also encountered a remeasurement loss on Provision for GIDC which dented the company's bottom line by Rs1.3bn in the review period.
Meanwhile, the finance cost of the company stood at Rs19.6bn, expanding by over 2x YoY in 9MCY22 due to a higher interest rate regime.
The company also paid Rs25.62bn in terms of taxation, up by 79% YoY compared to Rs14.31bn in 9MCY21.
