ICI withstands 33% decline in profits as overall costs increase

MG News | October 25, 2018 at 05:01 PM GMT+05:00

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October 25, 2018 (MLN): ICI Pakistan Limited’s (ICI) profits for the quarter ended 30^th September 2018 have dropped by 33.88%, due to combined effect of increase in Cost of sales, Operating expenses and Finance costs.

According to the notification issued to PSX, the top-line earnings for the company increased by 16.76%, whose impact was almost immediately annulled by an almost equal absolute increase in Cost of sales, leading to the gross profits of the company increasing by merely 7.58%.

The Selling & Distribution expenses and Administration & General expenses of the company reported an increase of 14.67% and 22.53% respectively, as compared to the corresponding period last year.

Similarly, the increase in Finance costs by a massive 190.08% i.e. Rs. 209 million struck the wrong chords of the financial position of the company.

Contrary to this, the taxes of the company fell considerably by 86.79% i.e. Rs. 1.5 billion, curbing some of the damage caused by other factors.

The Earnings per share of the company were stated at Rs. 5.83 for the quarter ended 30^th September 2018, 34.42% down from the previous year.

Profit and loss account for the quarter ended September 30th 2018 (Rupees'000)
	Sep-18	Sep-17	% Change
Net turnover	13,299,247	11,389,993	16.76%
Cost of sales	-11,090,356	-9,336,794	18.78%
Gross profit	2,208,891	2,053,199	7.58%
Selling and distribution expenses	-815,029	-710,761	14.67%
Administration and general expenses	-361,401	-294,942	22.53%
Finance costs	-318,956	-109,956	190.08%
Exchange loss	-11,900	-31,352	-62.04%
Workers' profit participation fund	-48,501	-50,208	-3.40%
Workers' welfare fund	-17,773	-11,893	49.44%
Other charges	-18,143	-11,011	64.77%
Other income	43,049	29,399	46.43%
Share of profit from associate	124,526	143,759	-13.38%
Profit before taxation	784,763	1,006,234	-22.01%
Taxation	-239,229	-1811140	-86.79%
Profit after taxation	545,534	825,094	-33.88%
Basic and diluted earnings per share	5.83	8.89	-34.42%

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