GHNI's FY24 profit spikes 336% to Rs781m

September 26, 2024 (MLN): Ghandhara Industries Limited (PSX: GHNI) experienced a rise of 335.5% YoY in its bottom line for FY24, earning Rs781.41 million [EPS: Rs10.71], compared to a profit of Rs179.42m [EPS: Rs9.78] reported in the previous financial year.

The profit and loss account displays that the company's top line inched higher Rs14.67bn as compared to Rs14.54bn in SPLY.

On the other hand, the cost of sales fell by 3.6% which along with a modest increase in sales improved the gross profit by 24.7% to Rs2.87bn in FY24.

Accordingly, the gross margins improved to 19.6% as compared to 15.8% in SPLY.

On the expense side, the company's administrative expenses rose 3.3% YoY to Rs383.87m, while distribution cost increased by 16.6% YoY to Rs1.07bn.

Conversely, other operating expenses fell 77.3% YoY to Rs29.37m during the review year.

Other income of GHNI dropped 34.4% to stand at Rs206.83m in FY24 as compared to Rs315.26m in FY23.

The company’s finance cost contracted by 32.5% and stood at Rs519.24m as compared to Rs769.29m in SPLY.

On the tax front, the company paid a higher tax worth Rs287.96m against the Rs244.41m paid in the corresponding period of last year, depicting a rise of 17.8%.

To sum up, effective management of the company's costs, along with reduced finance charges and other expenses, helped the company achieve a substantially higher profit.

Amount in thousand except for EPS

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