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EXIDE: Massive turnover drives bottom line towards profitability

August 2, 2021 (MLN): Exide Pakistan Limited (EXIDE) has unveiled its financial statement today for the first quarter ended on June 30, 2021 as per which the company witnessed a turnaround in earnings and reported a profit of Rs25 million (EPS: Rs3.21), against the losses of Rs228mn (LPS: 29.36) in the same period last year (SPLY).

The turnaround in earnings is primarily attributable to the massive surge in the company’s topline, colossal increment in other income, and lower financial cost.

As per financial results sent to PSX, turnover of the company during the review period has observed a remarkable increase by 2.6x to clock in at Rs4.6billion as compared to Rs1.7bn in the corresponding period last year. Similarly, the cost of goods sold also surged by twofold given the soaring topline.

The significant increase in sales is mainly due to the better sales prices and improved market demands. In addition, production activities were effectively planned and adjusted to cater to the market demand, both in terms of quantity and quality.

This has led the company towards a massive increment in gross profit by 29x to locked in at Rs4.12bn, compared to SPLY.

The financial statement further indicated that owing to the notable surge in topline and increasing inflation, the company saw a substantial increase in its major expense heads. The distribution and administrative expenses have expanded by 2.2x to stand at Rs339.62mn during the review period, against Rs151.69mn in the SPLY.

The bottom line of the company was also supported by the colossal expansion in its “other income” head which has swell by 2.67x to reach Rs2.27mn.

 With regards to the financial cost, the company witnessed a significant drop on this front on account of fewer borrowings and reduction in markup rates which has led the head to shrink by 28% to stand at Rs50mn during the review period.

Meanwhile, the company also paid Rs57.5mn in terms of taxation which is relatively 2x higher than the amount paid in SPLY.

              Profit and Loss for the First Quarter Ended June 30, 2021                   (Rs “000”)

 

2021

2020

% Change

Turnover

4,600,843

1,732,108

165.6%

Cost of goods Sold

(4,123,620)

(1,715,625)

140.4%

Gross Profit

477,223

16,483

2795.2%

Distribution cost

(303,143)

(122,377)

147.7%

Administrative expenses

(36,476)

(29,315)

24.4%

Total Operating expenses

(339,619)

(151,692)

123.9%

Operating profit/loss

137,604

(135,209)

Other Operating income

 2,270

850

167.1%

Finance charges

 (50,191)

(70,112)

-28.4%

Other charges

(7,234)

 2,398

Profit/loss before taxation

82,449

(202,073)

Taxation

(57,511)

 (25,982)

121.3%

Profit/Loss after tax

24,938

(228,055)

 

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Posted on: 2021-08-02T11:57:00+05:00

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