Descon Oxychem announces Bonus Share issue of 16%

September 3, 2020 (MLN): Descon Oxychem Limited has announced its financial result for the year ended June 30, 2020, which shows that the company earned a profit of Rs. 418.4 million, i.e. around 6% higher as compared to the earnings of last year.

The Earnings per share of the company stood at Rs. 3.42, i.e. 11.6% lower than that of the last year.

The company also announced a final Cash Dividend for the year at Rs. 1 per share i.e. 10%. Besides, the Board of Directors recommended issuing Bonus Shares in the proportion of 16 shares for every 100 shares held i.e. 16%.

The sales revenue of the company fell by 2.3% on account of HP prices, which recently went down by Rs. 9/kg. However, a report by Sherman Securities has stated that Covid-19 related demand suppression during 4QFY20 from textile sector was somewhat compensated by demand for HP as a disinfectant.

The impact of a rise in demand for HP was clearly seen in the gross profits, which depicted a growth of 3.7% over the year.

Other major highlights from the financial report include a 50% decline in other income, which was somewhat compensated by a 28.2% decline in non-core expenses.

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