GATM's Q12024 profit rises 5.25% YoY to Rs1.18bn

April 30, 2024 (MLN): Gul Ahmed Textile Mills Limited (PSX: GATM) recorded an increase of 5.25% YoY in its earnings for the quarter ended March 31, 2024 (Q12024), clocking in its profit after tax at Rs1.18 billion [EPS: Rs1.6], compared to a profit of Rs1.13bn [EPS: Rs1.52] in the same quarter last year.

Going by the results, the company's top line soared by 15.5% YoY to Rs43.61bn as compared to Rs37.75bn in SPLY.

GATM's gross profit worsened by 7.6% YoY to Rs7bn in Q1 2024, as the cost to sell outpaced the growth in sales revenue.

Accordingly, the gross margins dropped to 16.05% as compared to 20.08% in SPLY. 

The operating costs of the company were reported at Rs4.25bn, 13.91% higher than the expenses paid in Q12023.

The company’s finance cost contracted by 26.6% YoY and stood at Rs1.3bn as compared to Rs1.77bn in SPLY, despite higher interest rates.

On the tax front, the company paid a lower tax worth Rs513.4m against the Rs556.26m paid in the corresponding period of last year, depicting a fall of 7.7% YoY.

The company managed to achieve this growth due to positive other income, reduction in finance costs and lower tax outflow during the quarter.

Amount in thousand except for EPS

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