Ghandhara's earnings fall by 38% in FY23 amid losses from associate

October 03, 2023 (MLN): Ghandhara Automobiles Limited (PSX: GAL) 's profitability plunged by 38.17% YoY, clocking in its profit after tax at Rs173.53 million in FY23 [EPS: Rs3.04] compared to a profit of Rs280.67m [EPS: Rs4.92] in the previous last year.

The decrease in profitability was owed to losses from its associate, worth Rs38.21m as compared to profit earned from its associate in the previous year of Rs263.4m.

Going by the results, the company's top line inflated by 2.05x YoY to Rs13.1 billion as compared to Rs6.38bn in FY22.

The cost of sales also rose by 2.0x YoY but was lesser than proportionate to sales increase, which improved the gross profit by 2.02x YoY to Rs1.13bn in FY23.

Moreover, during the review period, other income expanded by 93.97% YoY to stand at Rs267.73m in FY23 as compared to Rs138.03m in the previous year.

On the expense side, the company observed an increase in distribution cost by 39.12% YoY and other expenses by 379.88% YoY to clock in at Rs194.97m and Rs103.71m respectively during the review period.

The company’s finance costs inflated by 82.40% YoY and stood at Rs354.74m as compared to Rs194.48m in FY23, mainly due to higher interest rates.

On the tax front, the company paid a substantially higher tax worth Rs216.25m against the Rs47.69m paid in the corresponding period of last year, depicting a riseof 4.53x YoY.

Amount in thousand except for EPS

Copyright Mettis Link News