Ghandhara Tyre sees huge profit jump in 1HFY24

February 27, 2024 (MLN): Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) witnessed a remarkable increase in its profit after tax for the first six months of fiscal 2024, reaching Rs151.48 million [EPS: Rs1.24].

This marks a substantial surge compared to the profit of Rs41.94m [EPS: Rs0.33] recorded in the same period of the previous year (SPLY), depicting a growth of over 3.6x YoY, according to the company filing on Tuesday.

Revenue rose 37.95% YoY to Rs9.89bn, while cost of sales increase was lesser than proportionate to the sales surge, resulting in a higher gross margin of 16.60%, up from 15.41% a year ago.

Ghandhara Tyre, which manufactures and trades tyres and tubes for automobiles and motorcycles, earned other income of Rs92.25m in 1HFY24 compared to Rs50.16m in SPLY, marking a rise of 83.89% YoY.

On the expense side, the company observed a rise in administrative expenses by 31.91% YoY while reducing its other expenses by 11.69% YoY to clock in at Rs210.68m and Rs29.12m respectively during the review period.

The company’s finance cost expanded by 41.61% YoY and stood at Rs832.44m as compared to Rs587.84m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs122.97m against the Rs38.98m paid in the corresponding period of last year, depicting a rise of 3.16x YoY.

Amount in thousand except for EPS

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