October 27, 2020 (MLN): Dawood Hercules has witnessed a 41% YoY increase in net profits for the nine months ended on September 30th, 2020, to Rs 29.62 billion against the net profits of Rs 20.96 billion reported in the same period last year.
The earnings per share of the company exhibited an increase of 37% YoY to Rs 11.19 during 9MCY20 as opposed to Rs 8.16 in 9MCY19.
Alongside financial results, the board of directors of the company announced an interim cash dividend for the quarter ended September 30th, 2020 at Rs 2 per share i.e. 20%. This is in addition to interim dividends already paid at Rs 7 per share i.e. 70%.
According to its profit and loss statement sent to PSX, the top line of the company grew remarkably by 22% YoY on the back of fertilizers and petrochemicals business performance. Whereas, the costs of sales also surged by 22% YoY, resulting in an increase in gross profits by 23% YoY. Besides, the gross margins remained flat during the 9MCY20.
On the cost front, the administrative expenses of the company during the period under review went up by 10.36% YoY along with an 8.5% YoY increase in selling and distribution expenses.
Furthermore, the company also witnessed a considerable rise in its finance cost by 42% to Rs 14.75 billion during the period. On the other hand, income from other sources declined by 17%YoY.
However, the profit from associates jumped by a whopping 67.5% YoY in 9MCY20 to Rs 1.947 billion due to an increase in profitability of its associates and joint ventures, providing comfort to the bottom-line. A 42% YoY decline in taxes to Rs 7.11 billion compared to the same period of last year also supported the financial performance of the company.
|
Consolidated Statement of Profit or Loss for nine months ended September 30th, 2020 (Rupees '000') |
|||
|---|---|---|---|
|
|
Sep-20 |
Sep-19 |
% Change |
|
Net sales |
182,505,534 |
149,400,575 |
22.16% |
|
Cost of sales |
(127,796,052) |
(104,911,349) |
21.81% |
|
Gross profit |
54,709,482 |
44,489,226 |
22.97% |
|
Selling and distribution expenses |
(5,528,201) |
(5,009,066) |
10.36% |
|
Administrative expenses |
(5,481,340) |
(5,052,251) |
8.49% |
|
Other income |
9,877,979 |
11,903,804 |
-17.02% |
|
Other operating expenses |
(4,026,726) |
(3,718,385) |
8.29% |
|
Finance costs |
(14,755,776) |
(10,396,311) |
41.93% |
|
Share of income from associates and Joint ventures |
1,947,034 |
1,162,624 |
67.47% |
|
Profit before taxation |
36,742,452 |
33,379,641 |
10.07% |
|
Taxation |
(7,112,501) |
(12,415,065) |
-42.71% |
|
Profits for the period |
29,629,951 |
20,964,576 |
41.33% |
|
Basic and diluted earnings per share |
11.19 |
8.16 |
37.13% |
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