Dawood Hercules observes a considerable drop in profits by 63%

April 29, 2019 (MLN): Dawood Hercules Corporation Limited has  announced its financial earnings  for the Quarter ended on March  31st 2019 , as per which company stated a considerable decline in its net profits by around 62.6% to Rs 6.7 billion from Rs 17.8 billion recorded in the same quarter last year.

During the period,  company’s cost of sales grew by 30%, administrative expenses by 50% and finance cost by 32%  which made the profits before tax drop by 55%.

Furthermore, the company's other income declined by 79% which put an additional dent on profitability of the company.

The company’s Earnings per share stood at Rs. 3.33 as compared to last year’s EPS of Rs.26.15, down by 87%.

The Board of Directors of the company announced an interim cash dividend  for the above mentioned quarter at Rs.5 per share i.e. 50%.

Financial Results for the Quarter ended March 31st 2019 (Rupees '000')

 

Mar-19

Mar-18

% Change

Net sales

                                                   40,647,358

                                                   33,524,875

21.25%

Cost of sales

                                                (28,645,147)

                                                (21,966,894)

30.40%

Gross profit

                                                   12,002,211

                                                   11,557,981

3.84%

Selling and distribution expenses

                                                   (1,740,448)

                                                   (1,839,444)

-5.38%

Administrative expenses

                                                   (1,498,633)

                                                   (1,001,374)

49.66%

Other income

                                                     2,953,054

                                                   14,099,151

-79.06%

Other operating expenses

                                                      (701,896)

                                                      (597,643)

17.44%

Finance costs

                                                   (1,819,145)

                                                   (1,372,491)

32.54%

Share of income from associates and Joint ventures

                                                         409,732

                                                         416,051

-1.52%

Profit before taxation

                                                     9,604,875

                                                   21,262,231

-54.83%

Taxation

                                                   (2,930,948)

                                                   (3,399,493)

-13.78%

Profits for the period

                                                     6,673,927

                                                   17,862,738

-62.64%

Basic and diluted earnings per share

                                                                3.33

                                                             26.15

-87.27%

Posted on: 2019-04-29T15:05:00+05:00

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