February 25, 2021 (MLN): General Tyre and Rubber Company (GTYR) has posted net profits of Rs 405.9 million during 1HFY21, which is 13.8x higher than the profits of Rs 29.29 million earned in the corresponding period last year.
This reflected in the company’s earnings per share as it jumped to Rs 3.33/sh compared to Rs 0.24/sh in 1HFY20.
The rise in profitability during the period was attributable to higher sales volume on account of growth in auto assemblers’ sales. The net revenues of the company rose significantly by 41% YoY on the back of improved sales volume of auto/tractor. The gross margin of the company also improved to 18% from 16% in the comparative period.
On the cost front, due to higher advertising and promotions, the company’s admin and distribution expenses surged by 4 and 20% YoY respectively.
While the finance cost of the company declined 46% YoY due to lower short-term borrowings coupled with low-interest rates.
Financial Results for the half-year ended December 31, 2020 (Rupees in '000) |
|||
---|---|---|---|
|
Dec-20 |
Dec-19 |
% change |
Sales-net |
6,448,619 |
4,564,320 |
41% |
Cost of sales |
(5,311,195) |
(3,811,685) |
39% |
Gross profit |
1,137,424 |
752,635 |
51% |
Administrative expenses |
(143,890) |
(137,699) |
4% |
Distribution expenses |
(246,108) |
(204,955) |
20% |
Other income |
125,319 |
68,548 |
83% |
Other expenses |
(54,249) |
(4,746) |
1043% |
Profit from Operations |
818,496 |
473,783 |
73% |
Finance Cost |
(233,961) |
(429,729) |
-46% |
|
584,535 |
44,054 |
1227% |
Share of (loss)/profit of an associated company |
3,533 |
(589) |
|
Profit before taxation |
588,068 |
43,465 |
1253% |
Taxation |
(182,139) |
(14,175) |
1185% |
Profit after taxation |
405,929 |
29,290 |
1286% |
Earning per share-basic and diluted |
3.33 |
0.24 |
1288% |
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