October 19, 2023 (MLN): Descon Oxychem Limited (PSX: DOL) experienced a significant decline of 61.67% YoY in its profitability, clocking in its profit after tax at Rs198.85m [EPS: 1.14], compared to the profit of Rs518.83m [EPS: 2.96] reported in the Same Period Last Year (SPLY).
Going by the results, the company's top line went down by 11.87% YoY to Rs1.5bn in 1QFY24 as compared to Rs1.7bn in SPLY.
On the other hand, the cost of sales rose by 31.67% YoY, which worsened the gross profit by 54.83% YoY to Rs386.57m in 1QFY24.
On the expense side, the company observed a rise in Distribution expenses by 21.63% YoY and administrative expenses by 57.79% YoY to clock in at Rs45.88m and Rs47.8m respectively during the review period.
Conversely, the company's other expenses went down by 54.3% YoY to Rs25m during the review period.
DOL's profit was supported by the increase in other income which clocked in at Rs53.53m in 1QFY24 as compared to Rs12.84m in SPLY.
The company’s finance costs inched up by 0.11% YoY and stood at Rs7m as compared to Rs6.99m in 1QFY23, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs115.54m against the Rs220.03m paid in the corresponding period of last year, depicting a fall of 47.49% YoY.
| Consolidated Condensed interim Financial Results for the quarter ended 30 September, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | Sep 22 | % Change | |
| Sales | 1,498,401 | 1,700,225 | -11.87% |
| Cost of sales | (1,111,836) | (844,441) | 31.67% |
| Gross Profit | 386,565 | 855,784 | -54.83% |
| Distribution expenses | (45,876) | (37,719) | 21.63% |
| Administrative expenses | (47,800) | (30,293) | 57.79% |
| Other Income | 53,525 | 12,841 | 316.83% |
| Other expenses | (25,028) | (54,760) | -54.30% |
| Finance cost | (6,995) | (6,987) | 0.11% |
| Profit before tax | 314,391 | 738,866 | -57.45% |
| Taxation | (115,542) | (220,034) | -47.49% |
| Net profit for the period | 198,849 | 518,832 | -61.67% |
| Basic and diluted earnings/ (loss) per share | 1.14 | 2.96 | – |
Copyright Mettis Link News
Posted on: 2023-10-19T10:27:11+05:00
