Descon Oxychem records a profit of PKR 14 million during 1QFY21

October 22, 2020 (MLN): Descon Oxychem Limited has recorded profits of Rs. 14.06 million (EPS: 0.11) for the quarter ended September 30, 2020, i.e. nearly 79% lower than the earnings reported in the same period of last year.

The major reason for such a significant decline in profits was i) almost no change in revenue and ii) higher cost of goods sold. These two factors caused the gross profits to decline by 55%.

While there were some positive changes such as a 21% decline in administrative expenses, 36% decline in other expenses and 85% decline in finance costs, their impact on the profit before tax was disguised as it fell by nearly 68%.

The company paid an income tax expense of Rs. 7.6 million during the period, which is around 43% lower than the same period of last year.  

Financial Results for the quarter ended September 30, 2020 (Rupees'000)

 

Sep-20

Sep-19

% Change

Sales

620,514

628,817

-1.3%

Cost of goods sold

(556,414)

(484,481)

14.8%

Gross profit

64,100

144,336

-55.6%

Distribution costs

(13,644)

(13,804)

-1.2%

Administrative expenses

(20,857)

(26,387)

-21.0%

Other expenses

(4,683)

(7,296)

-35.8%

Other income

2,149

6,320

-66.0%

Finance cost

(5,315)

(35,462)

-85.0%

Profit before taxation

21,750

67,707

-67.9%

Taxation

(7,684)

(13,547)

-43.3%

Profit after taxation

14,066

54,160

-74.0%

Earnings per share

0.11

0.53

-79.2%

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Posted on: 2020-10-22T12:28:00+05:00

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