February 28, 2022 (MLN): Ghani Glass Limited (PSX: GHGL), a bigger Ghani Group of Companies, has recorded a net profit of Rs2.8 billion (EPS: Rs3.34) during 1HFY22, showing an upsurge of 53% YoY in contrast to net profits of Rs1.83 (EPS: 2.23), mainly on the back of an increase in topline and other income.
According to the financial statement, the company witnessed a 35% growth in revenue to around Rs14bn in 1HFY22 percent. While the cost of sales grew by nearly 27% YoY, which brought the gross margin up by 4.65ppt to 29%.
On the cost side, the major expense head i.e., general and administrative cost surged by 64% to Rs759mn while selling and distribution cost and other expenses ballooned by 58% and 2.3x YoY, respectively. This might be due to salaries expense and general inflationary pressure.
Meanwhile, the company reported an increase of 16.6% YoY in finance cost to Rs75mn in 1HFY22 as the State Bank of Pakistan (SBP) hiked interest rates in the first half of the ongoing fiscal year amid growing inflation.
On the taxation front, however, the tax expenses fell by 35% YoY to Rs22mn in 1HFY22, which also provided some solace to the financial wellbeing of the company.
|
Financial Results for the half-year ended December 31, 2021 (Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Revenue from contracts with customers – net |
13,923,724,621 |
10,316,914,749 |
34.96% |
|
Cost of sales |
(9,822,063,970) |
(7,757,473,923) |
26.61% |
|
Gross profit |
4,101,660,651 |
2,559,440,826 |
60.26% |
|
General and administrative expenses |
(759,329,152) |
(462,961,973) |
64.02% |
|
Selling and distribution expenses |
(271,670,720) |
(172,382,489) |
57.60% |
|
Other expenses |
(310,859,580) |
(134,654,043) |
130.86% |
|
Provision for expected credit loss on trade debts |
(10,786,483) |
(8,467,588) |
27.39% |
|
Other income |
159,970,470 |
14,563,329 |
998.45% |
|
Profits from operations |
2,908,985,186 |
1,795,538,062 |
62.01% |
|
Finance costs |
(75,120,815) |
(64,439,270) |
16.58% |
|
Share of (loss)/profit of associate |
(10,966,598) |
131,918,721 |
– |
|
Profit before taxation |
2,822,897,773 |
1,863,017,513 |
51.52% |
|
Taxation |
(22,454,272) |
(34,578,003) |
-35.06% |
|
Profit after taxation |
2,800,443,501 |
1,828,439,510 |
53.16% |
|
Earnings per share – basic and diluted |
3.34 |
2.23 |
49.78% |
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