HI-Tech Lubricants witnesses a turnaround in bottom-line owing to high volumetric sales

February 22, 2021 (MLN): Hi-Tech Lubricants (HTL)has disclosed its financial results today for the 1HFY21, wherein the company witnessed a turnaround in its bottom-line  as it reported net profits of Rs 304.8 million compared to the loss of Rs 134.36 million in the same period last year.

The earnings per share of the company clocked in at Rs 2.63/sh against the loss per share of Rs 1.16/sh/

In conjunction with the results, the company also announced cash dividend of Rs 2 per share.

The profitability of the company can be attributed to high volumetric sales during the period.

Despited higher discounts issued ( up 13.98x YoY ) and 170% YoY increase in sales tax, the net revue of the company showed a massive growth of 122% YoY.

However, gross profits margin suffered an erosion by 4ppts YoY from 27% to 23% owing to higher proportion of OMC business in topline, lower inventory gains recorded and a potentially higher allocation of low-margin product in overall sales mix.

On the cost front, royalty expenses and operating costs paid to dealer operated outlets kept distribution costs elevated, as it up by 12% YoY. While financial charges of the company declined significantly by 59% YoY on the back of monetary easing.

 The income from other sources dropped by 32% YoY owing to lower income from financial assets.

 

Consolidated Financial Results for the Half-year ended December 31, 2020 (Rupees)

 

Dec-20

Dec-19

% Change

GROSS REVENUE

                                     6,861,897,848

                              2,805,446,925

145%

Discounts

                                      (342,010,199)

                                 (24,452,600)

1299%

Sales tax

                                   (1,901,941,159)

                               (704,381,945)

170%

NET REVENUE

                                     4,617,946,490

                              2,076,612,380

122%

COST OF SALES

                                   (3,556,903,615)

                            (1,506,340,351)

136%

GROSS PROFIT

                                     1,061,042,875

                                 570,272,029

86%

DISTRIBUTION COST

                                      (430,383,071)

                               (383,632,266)

12%

ADMINISTRATIVE EXPENSES

                                      (245,878,757)

                               (223,430,839)

10%

OTHER EXPENSES

                                        (22,366,357)

                                 (12,498,979)

79%

 

                                      (698,628,185)

                               (619,562,084)

13%

OTHER INCOME

                                          54,928,931

                                   81,086,505

-32%

PROFIT/(LOSS) FROM OPERATIONS

                                        417,343,621

                                   31,796,450

1213%

FINANCE COST

                                        (51,763,030)

                               (127,565,239)

-59%

PROFIT/(LOSS) BEFORE TAXATION

                                        365,580,591

                                 (95,768,789)

 

TAXATION

                                        (60,734,293)

                                 (38,596,528)

57%

PROFIT/(LOSS) AFTER TAXATION

                                        304,846,298

                               (134,365,317)

 

PROFIT/(LOSS) PER SHARE – BASIC AND DILUTED

 

                                                     2.63

                                            (1.16)

 

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Posted on: 2021-02-22T17:34:00+05:00

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