February 21, 2024 (MLN): Ittehad Chemical Limited (PSX: ICL) earned a profit after tax of Rs207.74 million [EPS: Rs2.08] in the second quarter of fiscal year 2024, a decline from the profit of Rs617.88m [EPS: Rs6.18] recorded in the same period last year (SPLY).
Going by the results, the company's top line shrank 13.48% YoY to Rs5.54bn as compared to Rs6.41bn in SPLY.
The cost of sales also fell 4.79% YoY but was lesser than proportionate to sales decline, which worsened the gross profit by 39.19% YoY to Rs984.37m in 2QFY24.
The gross margins plummeted to 17.76% as compared to 25.26% in SPLY.
However, during the review period, other income surged by 3.83x YoY to stand at Rs79.71m in 2QFY24 as compared to Rs20.79m in SPLY.
On the expense side, the company observed a decrease in selling and distribution expenses by 26.96% YoY and other expenses by 67.66% YoY to clock in at Rs326.6m and Rs30.24m respectively during the review period.
Meanwhile, the company’s finance costs went up by 20.97% YoY and stood at Rs224.54m as compared to Rs185.62m in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs186.72m against the Rs229.92m paid in the corresponding period of last year, depicting a fall of 18.79% YoY.
| Consolidated (un-audited) Financial Results for quarter ended 31 December, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales | 5,543,819 | 6,407,554 | -13.48% |
| Cost of sales | (4,559,452) | (4,788,784) | -4.79% |
| Gross Profit | 984,367 | 1,618,770 | -39.19% |
| Selling and distribution expenses | (326,595) | (447,157) | -26.96% |
| General and administrative expenses | (88,247) | (65,510) | 34.71% |
| Other Income | 79,713 | 20,794 | 283.35% |
| Other operating expenses | (30,236) | (93,485) | -67.66% |
| Finance cost | (224,541) | (185,617) | 20.97% |
| Profit before taxation | 394,461 | 847,795 | -53.47% |
| Taxation | (186,718) | (229,917) | -18.79% |
| Net profit for the period | 207,743 | 617,878 | -66.38% |
| Basic earnings/ (loss) per share | 2.08 | 6.18 | – |
Amount in thousand except for EPS
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Posted on: 2024-02-21T15:23:45+05:00
