Descon Oxychem reports around 85% YoY profit surge in H1 FY24

February 19, 2025 (MLN): Descon Oxychem Limited (PSX: DOL) recorded a significant 84.71% year-on-year (YoY) increase in its profit after tax, reaching Rs495.99 million [EPS: Rs2.83] in the first half of fiscal year 2024, compared to Rs268.52mn [EPS: Rs1.53] in the same period last year (SPLY).

The company has declared an interim cash dividend of Rs2 per share, representing a 20% payout.

The company’s top line grew by 10.13% YoY to Rs3.19 billion from Rs2.90bn in SPLY, driven by improved sales performance.

Additionally, the cost of sales declined by 6.13% YoY, supporting a sharp 74.14% YoY rise in gross profit, which stood at Rs1.02bn.

However, administrative expenses and other operating expenses saw increases of 14.01% and 127.21% YoY, respectively, while other income declined by 60.95% YoY.

Despite this, operating profit surged by 60.47% YoY to Rs783.61mn.

The company also benefited from a substantial 62.06% YoY reduction in finance costs, which contributed to a 63.80% YoY rise in profit before levy and taxation, amounting to Rs778.71mn.

On the taxation front, the company paid Rs282.72mn, marking a 37.64% increase from the previous year.

Copyright Mettis Link News