GAL swings to over Rs1bn profit after last year’s loss

April 21, 2025 (MLN): Ghandhara Automobiles Limited (PSX: GAL) posted a robust turnaround, recording a profit of Rs1.29 billion [EPS: Rs22.56] for the period ended March 31, 2025, against a loss of Rs163.33 million [LPS: Rs2.87] in the same period last year (SPLY).

The significant turnaround was primarily driven by a 126% YoY surge in revenue, which rose to Rs8.38bn.

Although the cost of sales also climbed 94.4% to Rs6.87bn, the stronger growth in sales led to a massive 779.5% jump in gross profit, reaching Rs1.51bn.

Consequently, gross margins witnessed a substantial improvement.

Other income also played a key role, increasing 162.2% to Rs556.62m.

On the flip side, administrative expenses inched up 6.4% YoY to Rs206.68m, while distribution costs rose 28.3% to Rs129.65m.

Other expenses saw a sharp rise to Rs90.75m from just Rs2.27m in the SPLY.

Notably, finance costs decreased by 49.2% to Rs132.91m, easing pressure on the bottom line and helping operating profits to soar to Rs1.64bn, up from Rs87.72m last year a jump of over 1,766%.

On the tax front, GAL recorded a net tax expense of Rs218.44m compared to a tax income of Rs56.3m in the SPLY, mainly due to current and deferred tax adjustments.

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