Descon's profit plummets by 73% YoY in 1QFY24

February 13, 2024 (MLN): Descon Oxychem Limited (PSX: DOL) experienced a fall of 73.36% YoY in its profitability, clocking in its profit after tax at Rs268.52 million [EPS: Rs1.53] in the first half of fiscal year 2024, compared to a profit of Rs1.01 billion [EPS: Rs5.76] in the same period last year (SPLY).

Going by the results, the company's top line fell by 16.65% YoY to Rs2.9bn as compared to Rs3.48bn in SPLY.

Moreover, the cost of sales rose by 27.63% YoY, worsening the gross profit by 64.77% YoY to Rs588.03m in 1QFY24.

The gross margins fell to 20.26% as compared to 47.92% in SPLY.

However, during the review period, other income soared by 3.15x YoY to stand at Rs127.91m in 1QFY24 as compared to Rs40.66m in SPLY.

On the expense side, the company observed an increase in administrative expenses by 33.78% YoY and other expenses by 64.60% YoY to clock in at Rs99.58m and Rs37.02m respectively during the review period.

The company’s finance costs decreased by 4.34% YoY and stood at Rs12.92m as compared to Rs13.5m in 1QFY24, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs206.87m against the Rs431.17m paid in the corresponding period of last year, depicting a fall of 52.02% YoY.

Amount in thousand except for EPS

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