Ghandhara Tyre rebounds with Rs229m profit

September 04, 2024 (MLN): Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) bounced back in fiscal year 2024 with a net profit of Rs229.06 million [EPS: Rs1.88] as sales jumped.

That compares with a loss of Rs167.36m [LPS: Rs1.37] incurred last year.

Along with the results, the company announced a final cash dividend of Rs1.87 per share i.e. 18.7%.

The company's sales revenue rose 36.8% to Rs20.54bn as compared to Rs15.02bn in FY23. The company's gross profit increased by 43.0% to Rs3.28bn in fiscal year ending June 2024.

The gross margins rose to 16.0% as compared to 15.3% last year.

Other income rose by 44.7% to Rs145.16m as compared to Rs100.33m in FY23.

On the expense side, the company's administrative expenses rose 31.1% from last year to Rs409.27m, and selling and distribution expenses rose 29.2% to Rs808.99m.

While its other operating expenses fell 91.6% compared to a year ago to Rs29.93m.

The company’s finance cost grew by 30.1% and stood at Rs1.68bn as compared to Rs1.29bn in FY23, mainly due to higher interest rates.

On the tax front, the company paid a tax expense worth Rs266.61m against the Rs26.25m tax credit received last year. This translates to an effective tax rate of 53.8%.

Amount in thousand except for EPS

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