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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