GTYR: Improved sales volume lifts profits by 13.8x

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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Posted on: 2021-02-25T17:24:00+05:00

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