GATM: Profit plunges by over 50% in FY23

MG News | September 26, 2023 at 11:11 AM GMT+05:00

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September 26, 2023 (MLN): Gul Ahmed Textile Mills Limited (PSX: GATM) has wrapped up the financial year 2023 on a depressing note as the bottom line of the company shrank by 50.26% YoY to Rs4.89 billion (EPS: Rs6.62), compared to Rs9.84bn (EPS: Rs13.30) in the same period last year.

The drop in profitability is attributed to higher finance cost which has surged by 86.57% YoY to Rs7.31bn in FY23.

Going by the financial statement, the net sales of the company clocked in at Rs138.9bn, observing an increase of only 14% YoY while the cost of sales jumped by over 16.82% YoY to Rs110.7bn in the review period. As a result, the gross margins of the company squeezed to 20.28% in FY23 from 22.17% in FY22.

On the cost front, the company’s operating cost was recorded at Rs462 million compared to Rs934.89mn in the same period last year.

Among other line items, the other income of the company has decreased by 16.72% YoY in FY23.

On the taxation front, the company paid Rs2.09bn compared to Rs1.85bn in FY22.

Consolidated Profit and Loss statement for the year ended June 30, 2023 ('000 Rupees)
	Jun-23	Jun-22	% Change
Sales	138,926,684	121,812,606	14.05%
Cost of sales	110,746,708	94,800,552	16.82%
Gross profit	28,179,886	27,012,054	4.32%
Distribution costs	8,572,834	7,627,180	12.40%
Administrative cost	5,654,620	3,818,849	48.07%
Other operating cost	462,460	934,896	-50.53%
	14,689,914	12,380,925	18.65%
	42,869,800	39,392,979	8.83%
Other income	821,871	986,920	-16.72%
Operating profit	13,489,972	14,631,129	-7.80%
Finance costs	(7,315,542)	(3,921,064)	86.57%
Profit before income tax	6,996,301	11,696,985	-40.19%
Income tax	2,098,816	1,851,948	13.33%
Profit after income tax	4,897,485	9,845,837	-50.26%
Earnings per share - basic and diluted (Rupees)	6.62	13.30	-50.23%

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