GHNI's profit tumbles by 75% YoY to Rs179.42m in FY23

MG News | October 03, 2023 at 03:06 PM GMT+05:00

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October 03, 2023 (MLN): Ghandhara Industries Limited (PSX: GHNI) has reported a profit of Rs179.42 million [EPS: 4.21] in the fiscal year 2023, compared to a profit of Rs728.5m [EPS: 17.1] recorded in the Same Period Last Year (SPLY), reflecting a major decline of 75.37% YoY, company's filing on PSX revealed today.

To note, the Board of Directors (BoD) of the company has recommended the closure of Marghzar Industries (Pvt.) Limited based on application to the Securities and Exchange Commission of Pakistan (SECP) by the members of Marghzar Industries (Pvt.) Limited regarding its closure.

The company has already been struck off from the books of SECP.

The aforesaid matter will be presented to the members for their ratification in the forthcoming Annual General Meeting to be held on October 27, 2023.

Going by the results, the company's top line fell significantly by 40.07% YoY to Rs14.54bn as compared to Rs24.27bn in SPLY.

The cost of sales also went down by 42.55% YoY but was lower than proportionate to sales decline, which worsened the gross profit by 22.21% YoY to Rs2.3bn in FY23.

On the expense side, the company observed a fall in Distribution expenses by 4.46% YoY and other expenses by 59.25% YoY to clock in at Rs921.74m and Rs129.53m respectively during the review period.

Conversely, GHNI's administrative expenses for FY23 increased by 5.48% YoY to Rs371.75m.

During the review period, other income improved by 16.77% YoY to stand at Rs315.26m in FY23 as compared to Rs270m in SPLY.

The company’s finance costs grew by 70.35% YoY and stood at Rs769.29m as compared to Rs451.58m in FY22, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs244.41m against the Rs412.4m paid in the corresponding period of last year, depicting a decrease of 40.74% YoY.

Unconsolidated (un-audited) Financial Results for the year ended 30 June 2023 (Rupees in '000)
	June 23	June 22	% Change
Sales	14,542,578	24,265,107	-40.07%
Cost of sales	(12,241,703)	(21,307,454)	-42.55%
Gross Profit	2,300,875	2,957,653	-22.21%
Distribution expenses	(921,744)	(964,822)	-4.46%
Administrative expenses	(371,745)	(352,446)	5.48%
Other Income	315,264	269,997	16.77%
Other expenses	(129,533)	(317,905)	-59.25%
Finance cost	(769,285)	(451,578)	70.35%
Profit before taxation	423,832	1,140,899	-62.85%
Taxation	(244,408)	(412,399)	-40.74%
Net profit for the period	179,424	728,500	-75.37%
Basic and diluted earnings/ (loss) per share	4.21	17.10	-

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