Earning Review: Pak Elektron reports 32.6% decline in PAT

August 23, 2019 (MLN): Pak Electron Limited (PAEL) has announced its financial results for the half year ended on June 30th 2019, as per which the company reported its Profits after tax declined by 32.6% to Rs 275.7 million with EPS clocked in at Rs 0.51.

The decrease in earnings has come largely from meagre sales volume and higher cost of sales which declined company’s gross profits marginally to Rs 1.66 billion.

Moreover, a jump in finance costs by 29% due to rising cost of borrowing also declined company’s profitability.

On expenses front, company’s administrative expenses and distribution expenses surged by 8% and 2.6% respectively, whereas, its other operating expenses declined by 32%.

However, the company enjoyed reduction in tax payments of about 9%, but the impact failed to elevate company’s net profits.

Consolidated Financial Results for the half year ended June 30th 2019 ('000 Rupees)

 

Jun-19

Jun-18

% Change

GROSS SALES

 16,006,595

 14,980,131

6.85%

SALES TAX AND DISCOUNTS

 (2,256,930)

 (2,041,342)

10.56%

NET SALES

 13,749,665

 12,938,789

6.27%

COST OF SALES

 (12,081,830)

 (11,254,158)

7.35%

GROSS PROFIT

 1,667,835

 1,684,631

-1.00%

OTHER OPERATING INCOME

 21,449

 9,057

136.82%

DISTRIBUTION COST

 (316,242)

 (307,943)

2.69%

ADMINISTRATIVE EXPENSES

 (360,241)

 (333,821)

7.91%

OTHER OPERATING EXPENSES

 (25,098)

 (36,931)

-32.04%

FINANCE COST

 (706,733)

 (546,017)

29.43%

SHARE OF PROFIT/(LOSS) OF ASSOCIATE

 –  

 –

 

PROFIT BEFORE TAXATION

 280,970

 468,976

-40.09%

PROVISION FOR TAXATION

 (5,241)

 (59,721)

-91.22%

PROFIT AFTER TAXATION

 275,729

 409,255

-32.63%

EARNINGS PER SHARE

 0.51

 0.78

-34.62%

 

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Posted on: 2019-08-23T15:55:00+05:00

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