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HomeEquityIntense competition and lower sales drag PAEL's earnings down by 58%

Intense competition and lower sales drag PAEL’s earnings down by 58%

April 5, 2019 (MLN): Pak Elektron Limited (PAEL) has reported net earnings of Rs. 1.3 billion for the year ended December 31, 2018, i.e. around half of the profits earned last year. The significant decline in profit margins was a result of lower gross margins due lesser sales, as well as higher financial charges.

The period under review proved to be extremely challenging for the company due to intense competition it faced coupled with lower purchases by consumers.

Moreover, the results announced by the company are in line with the market expectations.

The company’s Earnings per share stood at Rs. 2.67 as compared to last year’s EPS of Rs. 6.56.

Financial Results for the year ended December 31, 2018 (Rupees'000)

 

2018

2017

% change

Revenue

38,990,247

42,346,753

-7.93%

Sales Tax, Excise Duty and Discounts

(10,544,936)

(11,346,711)

-7.07%

Net Revenue

28,445,311

31,000,042

-8.24%

Cost of Sales

(21,448,040)

(21,883,842)

-1.99%

Gross Profit

6,997,271

9,116,200

-23.24%

Other Income

17,977

17,793

1.03%

Distribution Cost

(2,207,445)

(2,683,532)

-17.74%

Administrative and general expenses     

-1,081,326

(1,118,844)

-3.35%

Other expenses

(63,376)

(176,194)

-64.03%

Operating Profit                   

3,663,101

5,155,423

-28.95%

Finance Cost

(2,103,343)

(1,546,604)

36.00%

Share of Loss of Associate  

(2,456)

(5,354)

-54.13%

Profit before taxation

1,557,302

3,603,465

-56.78%

Taxation     

(185,833)

(295,211)

-37.05%

Profit after Taxation 

1,371,469

3,308,254

-58.54%

Earnings per share-basic and diluted

2.67

6.56

-59.30%

 

Copyright Mettis Link News

Posted on: 2019-04-05T10:53:00+05:00

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