February 19, 2020 (MLN): Ghandara Industries Limited (GHNI) has announced its financial results for the half-year ended on December 31, 2019. As per the results, the company has incurred losses worth Rs 105 million (LPS: Rs 2.47) compared to last year net profits of Rs 383 million (EPS: Rs 8.99).
During the period, the cost of sales decreased by 21.27% YoY but more than a proportionate decrease in revenue (down by 22.29% YoY) caused gross profits to decrease by around 29% YoY to Rs 752 million.
The company’s distribution and administrative expenses went up by 1.20% YoY and 3% YoY respectively. However, other expenses plunged by 80% YoY to Rs 4.3 million.
More notably, the colossal increase in finance cost by 91.45% YoY, from Rs 254 million to Rs 488 million dented the company’s performance owing to higher interest rate and running finance requirement.
Financial Results for the half-year ended December 31, 2019 ('000 Rupees)
Dec-19
Dec-18
% Change
Sales
5,880,616
7,567,541
-22.29%
Cost of Sales
(5,127,861)
(6,513,209)
-21.27%
Gross profit
752,755
1,054,332
-28.60%
Distribution cost
(279,010)
(275,689)
1.20%
Administrative expenses
(146,494)
(142,301)
2.95%
Other expenses
(4,371)
(22,265)
-80.37%
Other income
20,878
24,988
-16.45%
Profit (loss) from operations
343,758
639,065
-46.21%
Finance cost
(488,048)
(254,916)
91.45%
(Loss)/profit before taxation
(144,290)
384,149
–
Taxation
39,238
(1,010)
–
(Loss)/Profit after taxation
(105,052)
383,139
–
basic and diluted (loss)/earning per share(Rupees)