GADT’s profit jumps 13% in second quarter

August 06, 2024 (MLN): Gadoon Textile Mills Limited (PSX: GADT) experienced a rise of 13.1% YoY in its profitability during the second quarter of 2024, earning a profit after tax of Rs516.73 million [EPS: Rs18.44].

That compares with a profit of Rs457.05m [EPS: Rs16.31] in the same period last year (SPLY).

During the whole financial year ending June 2024, the company reported a profit of Rs794.55m as against Rs3.29 billion last year.

The company did not pay any dividend throughout the year.

Going by the quarterly results, the company's top line increased 19.6% YoY to Rs18.23bn as compared to Rs15.24bn in SPLY.

However, the cost of sales also rose by 26.9% YoY, worsening the gross profit by 31.1% YoY to Rs1.32bn in Q2 2024.

The gross margins fell to 7.3% as compared to 12.6% in SPLY.

During the period under review, other income marked a decline of 69.0% YoY to stand at Rs106.14m in Q2 2024 as compared to Rs342.39m in SPLY.

On the expense side, the company's administrative expenses rose 9.1% YoY to Rs141.82m, selling and distribution expenses jumped 43.9% YoY to Rs261.79m, and other operating expenses increased 43.9% YoY to Rs27.77m.

The company’s finance cost also inflated by 14.0% YoY and stood at Rs900.25m as compared to Rs789.86m in SPLY, mainly due to higher interest rates.

On the tax front, the company received a tax credit worth Rs10.14m against a tax expense of Rs547.6m paid in the corresponding period of last year, depicting a rise of YoY.

Amount in thousand except for EPS

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