Increased tax reversals pull up Suraj Cotton Mills’ annual profits

Suraj Cotton Mills Limited reported 11.8% increase in annual profits due to 517% rise in tax reversals.

In a Board of Directors meeting held on August 31, 2018, the company’s financial earnings for the year ended June 30th 2018 were reviewed and compared to the annual earning made during the year ended June 20th 2017.

Based on year-on-year comparison, Suraj Cotton Mills’ net sales increased by 33.5%. Since cost of sales rose by a comparatively smaller margin, the company’s gross profits went up by 72%.

However, total expenses grew by 172%, while finance costs increased by 98% leading to an 11.8% drop pre-tax entry.

Fortunately for the company, tax reversals increased by a huge margin, preventing a fall in profits for the year.

Additionally, basic and diluted earnings per share dropped for Rs.19.19 during the last year ended on June 30th 2017, to Rs.17.73 during the year ended on June 30th 2018.

Profit and Loss Account for the Year Ended June 30th 2018 ('000 Rupees)

 

Jun-18

Jun-17

% Change

Sales – net

                11,095,688

                  8,313,438

33.47%

Cost of sales

                10,181,955

                  7,784,454

30.80%

Gross profit

                      913,733

                      528,984

72.73%

Distribution expenses

                      141,279

                      125,660

12.43%

Administrative expenses

                      147,379

                      140,691

4.75%

Other operating expenses

                      145,039

                        86,214

68.23%

 

                      480,036

                      176,419

172.10%

Other income

                        96,596

                      382,832

-74.77%

Operating profit

                      576,632

                      559,251

3.11%

Finance costs

                      150,626

                        76,043

98.08%

Profit before taxation

                      426,006

                      483,208

-11.84%

Taxation

                      139,455

                        22,598

517.11%

Profit for the year

                      565,461

                      505,806

11.79%

Earnings per share – basic and diluted (Rupees)

                          17.73

                          19.19

-7.61%

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Posted on: 2018-08-31T15:39:00+05:00

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