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HomeEquityEarning Review: FCCL receives a crushing blow from higher tax expenses

Earning Review: FCCL receives a crushing blow from higher tax expenses

August 27, 2019 (MLN): Fauji Cement Company Limited has declared net income of Rs. 2.8 billion (EPS: Rs. 2.05) for the year ended June 30, 2019, which is 17% lower than the income recorded in last year.

According to the financial report issued by the company, the sales revenue exhibited slight decline of 1.7%, mainly owing to decline in volumetric sales. On the other hand, the cost of sales slipped by 4% in spite of higher input costs. This translated into a growth in gross profits by 5%.

Despite lower volumetric sales, the distribution and administrative expenses of the company grew by 6% and 8% respectively.

Nonetheless, the biggest blow to the company was given by income tax expense, as it jumped by 137%.

The company also announced a final cash dividend for the year at Rs. 0.75 per share of Rs.10/- each i.e. 7.5 %. This is in addition to interim cash dividend already paid at Rs. 0.75 per share of Rs. 10 each, i.e. 7.5%.

Profit and loss account for the year ended June 30, 2019 (Rupees'000)

 

June, 2019

June, 2018

% Change

Turnover-net

20,798,082

21,160,878

-1.71%

Cost of sales

-15,474,771

-16,124,517

-4.03%

Gross profit

5,323,311

5,036,361

5.70%

Distribution cost

-210,335

-197,707

6.39%

Administrative expenses

-415,979

-385,602

7.88%

Other operating expenses

-326,689

-311,184

4.98%

Finance cost

-106,758

-147,813

-27.77%

Other income

148,358

104,094

42.52%

Profit before taxation

4,411,908

4,098,149

7.66%

Income tax expense

-1,587,610

-668,685

137.42%

Profit for the year

2,824,298

3,429,464

-17.65%

Earnings per share – basic and diluted (Rupees)

2.05

2.49

-17.67%

 

Copyright Mettis Link News

Posted on: 2019-08-27T13:14:00+05:00

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