May 02, 2023 (MLN): Flying Cement Company Limited (PSX: FLYNG) profitability plunged by 70% YoY to clock in at Rs226.71 million [EPS: Rs0.33] in 9MFY23 against the profits of Rs766.2m [EPS: Rs1.94] reported in the same period last year (SPLY).
Going by the results, the topline of the company stood at Rs3.18 billion in 9MFY23, registering a 20% YoY decline compared to Rs3.97bn in SPLY.
This was mainly attributed to economic challenges faced by the country, such as higher inflation, political uncertainty, heavy floods, increases in KIBOR and import curtailment coupled with rupee devaluation which affected the cement demand during the period under review.
On the expense side, distribution expenses rose by 73% YoY, and finance costs posted a 49% YoY growth to Rs122.83m in 9MFY23 mainly due to higher interest rates.
The company’s other income declined by 90% YoY to stand at Rs8.54m in 9MFY23.
On the taxation front, the company paid 69% YoY higher taxes worth Rs96.47m as tax payments against Rs56.92m paid in the corresponding period of last year.
Future Outlook
Despite the economy continuing to face challenges, on account of rising imports, current account deficit, increased inflationary pressures, heavy flood, current political uncertainty, ongoing Russia-Ukraine conflict, a sharp increase in fuel and energy prices, mounting foreign debt and depleting foreign exchange reserves, the company remains hopeful for improvement in domestic sales on account of Government spending on re-habilitation of flood disaster and mega projects.
Going forward, the management of the company is committed to addressing these challenges and providing long-term sustainable growth and value for all stakeholders. The company is confident that it can improve profitability in the remaining period of the year by working hard and enthusiastically, as the company transmitted in the quarterly report to PSX.
|
Financial results for the nine months ended March 31, 2023 (Rupees) |
|||
|---|---|---|---|
|
|
Mar-23 |
Mar-22 |
% Change |
|
Gross Sales |
4,213,752,434 |
5,369,834,388 |
-22% |
|
Sales tax and federal excise duty |
(1,028,585,864) |
(1,393,881,329) |
-26% |
|
Net Sales |
3,185,166,570 |
3,975,953,059 |
-20% |
|
Cost of sales |
(2,677,085,927) |
(3,089,723,802) |
-13% |
|
Gross profit/(Loss) |
508,080,643 |
886,229,257 |
-43% |
|
Distribution expenses |
(9,858,951) |
(5,685,230) |
73% |
|
Administrative expenses |
(60,743,001) |
(62,088,541) |
-2% |
|
Operating Profit/ (Loss) |
437,478,691 |
818,455,486 |
-47% |
|
Finance costs |
(122,839,149) |
(82,188,829) |
49% |
|
Other income |
8,542,170 |
86,847,204 |
-90% |
|
Profit/(Loss) before taxation |
323,181,712 |
823,113,861 |
-61% |
|
Taxation |
(96,469,803) |
(56,915,998) |
69% |
|
Profit/ (Loss) after taxation |
226,711,909 |
766,197,863 |
-70% |
|
Earnings/ (Loss) per share – basic |
0.33 |
1.94 |
– |
Copyright Mettis Link News
Posted on: 2023-05-02T10:28:49+05:00
