September 13, 2021 (MLN): Hi-Tech Lubricants Limited (HTL) has declared net profits of Rs651.49mn for FY21, which was 5.3x higher than the profits of Rs121.6mn reported in the previous fiscal year.
In line with profits, the earnings per share of the company jumped from Rs1.05/sh to Rs5.62/sh.
The jump in earnings during FY21 was owed to growth in volumes and higher selling prices.
Along with the result, the company announced a cash dividend of Rs4.00/share and a 40% bonus for FY21.
During the year, the top-line of the company witnessed a massive growth of 88% YoY to Rs10,597mn due to growing demand for lubricants amid a surge in automobile sales and rampant economic activity, as well as improvement in prices.
Consequently, the company posted a gross profit of Rs2.26bn with gross margins set at 21% in FY21 compared to a gross margin of 25% in SPLY. The decline in gross margins is attributable to higher discounts (Rs803.7mn Vs Rs270.4mn) offered to attract new customers and increase market share in the highly competitive mid-tier and low-tier market segment, a report by Arif Habib Limited (AHL) said.
Among other line items, the other income of the company declined by 18% YoY while its distribution and admin-related costs surged by 17% and 25% respectively, resulting in an operational profit of Rs895.9mn, up by 188% YoY. Meanwhile, finance costs dropped by 51% YoY to Rs114.6mn due to lower interest rates and short-term borrowing during the period under review.
On the taxation front, the company recorded effective taxation at 17% in FY21 compared to tax reversal in FY20.
Looking ahead, the company is likely to continue posting massive growth in profitability on the back of growing demand for lubricants, rising share in passenger car motor oil segment to 16.5%, rampant economic activity, and rising tourism, the report said.
Moreover, plan to increase OMC retail outlets where the company will also offer other services which might also boost sales of lubricants and petroleum products, and diversification into plastic packaging business which will also contribute to the bottom-line of the company, it added.
|
Consolidated Financial Results for the year ended June 30, 2021 (Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
GROSS REVENUE |
15,600,490,187 |
8,141,926,516 |
92% |
|
Discounts |
(830,704,052) |
(270,429,986) |
207% |
|
Sales tax |
(4,172,398,473) |
(2,242,837,824) |
86% |
|
NET REVENUE |
10,597,387,662 |
5,628,658,706 |
88% |
|
COST OF SALES |
(8,329,595,460) |
(4,213,549,915) |
98% |
|
GROSS PROFIT |
2,267,792,202 |
1,415,108,791 |
60% |
|
DISTRIBUTION COST |
(861,385,257) |
(737,927,997) |
17% |
|
ADMINISTRATIVE EXPENSES |
(547,749,403) |
(436,555,999) |
25% |
|
OTHER EXPENSES |
(70,521,255) |
(60,453,117) |
17% |
|
|
(1,479,655,915) |
(1,234,937,113) |
20% |
|
OTHER INCOME |
107,782,269 |
131,194,064 |
-18% |
|
PROFIT/(LOSS) FROM OPERATIONS |
895,918,556 |
311,365,742 |
188% |
|
FINANCE COST |
(114,660,654) |
(235,639,942) |
-51% |
|
PROFIT/(LOSS) BEFORE TAXATION |
781,257,902 |
75,725,800 |
932% |
|
TAXATION |
(129,768,407) |
45,890,877 |
|
|
PROFIT/(LOSS) AFTER TAXATION |
651,489,495 |
121,616,677 |
436% |
|
PROFIT/(LOSS) PER SHARE – BASIC AND DILUTED |
|||
|
|
5.62 |
1.05 |
435% |
Copyright Mettis Link News
26820
