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.
|
Financial Results for the year ended June 30, 2020 (Rupees'000) |
|||
|---|---|---|---|
|
Jun-20 |
Jun-19 |
% Change |
|
|
Sales |
2,641,615 |
2,704,957 |
-2.3% |
|
Cost of sales |
(1,780,357) |
(1,874,206) |
-5.0% |
|
Gross Profit |
861,258 |
830,751 |
3.7% |
|
Administrative expenses |
(102,785) |
(89,619) |
14.7% |
|
Distribution and selling costs |
(50,719) |
(37,844) |
34% |
|
Other operating expenses |
(48,226) |
(67,153) |
-28.2% |
|
Other income |
10,754 |
21,520 |
-50.0% |
|
Finance cost |
(81,420) |
(79,181) |
2.8% |
|
Profit before taxation |
588,862 |
578,474 |
1.8% |
|
Taxation |
(170,439) |
(184,205) |
-7.5% |
|
Profit after taxation |
418,423 |
394,269 |
6.1% |
|
Earnings per share |
3.42 |
3.87 |
-11.6% |
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