Gharibwal Cement quarterly earnings jump 31%

October 25, 2024 (MLN): Gharibwal Cement Limited (PSX: GWLC) on Friday reported a profit after tax of Rs535.08 million [EPS: Rs1.34] for the quarter ending September 2024.

That is up 31.1% compared to a profit of Rs408.22m [EPS: Rs1.02] in the same period last year (SPLY).

The increase comes despite the company's revenue falling slightly by 0.9% to Rs4.32bn as compared to Rs4.36bn in SPLY. That was because its cost of sales fell 9.9%, which improved the gross profit by 35.1% to Rs1.17bn in Q1 FY25.

The gross margins rose to 27.2% as compared to 19.9% in SPLY.

During the period under review, other income grew by 16.7% to stand at Rs81.48m in Q1 FY25 as compared to Rs69.81m in SPLY.

On the expense side, the company's administrative expenses rose 33.5% from a year ago to Rs218.06m, other operating expenses rose 32.0% to Rs65.59m, while selling and distribution expenses fell 6.2% to Rs18.81m.

The company’s finance cost grew by 66.4% and stood at Rs74.67m as compared to Rs44.86m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs342.1m against the Rs251.79m paid in the corresponding period of last year, depicting an increase of 35.9%.

This translates to an effective tax rate of 39.0% as compared to 38.1% in SPLY.

Amount in thousand except for EPS

Copyright Mettis Link News