Gul Ahmed profit jumps 79% in fourth quarter

September 26, 2024 (MLN): Gul Ahmed Textile Mills Limited (PSX: GATM) recorded an increase of 79.1% in its profitability during the quarter ending June 2024 as its other income surged.

The company earned a net profit of Rs2.42 billion [EPS: Rs3.27] compared to Rs1.35 bn [EPS: Rs1.82] in the same period last year (SPLY) despite a fall In gross margins.

For the full fiscal year 2023-24, the company posted a profit after tax of Rs4.73bn [EPS: Rs6.39] as against Rs3.99bn [EPS: Rs5.39] reported last year.

Going by the unconsolidated quarterly results, the company's top line rose by 20.5% to Rs38bn as compared to Rs31.53bn in SPLY.

However, the cost of sales also surged by 27.4%, worsening the gross profit by 10.5% to Rs5.11bn in Q4 FY24.

The gross margins fell to 13.4% as compared to 18.1% in SPLY.

During the period under review, other income surged 2281.0% to stand at Rs975.24m in Q4 FY24 as compared to Rs40.96m in SPLY.

On the expense side, the company's administrative expenses fell 15.5% from a year ago to Rs749.73m. While selling and distribution expenses and other operating expenses rose 23.8% and 24.1%, respectively.

The company’s finance cost decreased 29.0% and stood at Rs1.51bn as compared to Rs2.13bn in SPLY.

On the tax front, the company paid a lower tax worth Rs298.86m against the Rs488.24m paid in the corresponding period of last year, depicting a decrease of 38.8%.

This translates to an effective tax rate of 11.0% as compared to 26.6% in SPLY.

Amount in thousand except for EPS

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