August 28, 2024 (MLN): Ismail Industries Limited (PSX: ISIL) recorded a decrease of around 4% YoY in its earnings for FY24, clocking in its profit after tax at Rs6.13 billion [EPS: Rs92.41], compared to a profit of Rs6.38bn [EPS: Rs96.17] reported in the previous fiscal year.
Along with the profit and loss account, the Board of Directors of ISIL has declared a final cash dividend on the ordinary shares of the company of Rs10 per share.
Going by the results, the company’s top line expanded 22.5% to Rs108.89bn as compared to Rs88.91bn in SPLY.
The cost of sales also rose by 20.4% but as the sales grew by a greater proportion, the gross profit improved by 30.3% to Rs24.02bn in FY24.
The gross margins improved to 22.1% as compared to 20.7% in SPLY.
The expense section of the income statement displays an increased burden of expenses.
administrative expenses rose 67.9% YoY to Rs1.76bn, selling and distribution expenses increased 17.4% YoY to Rs8.28bn, and other operating expenses grew 3.9% YoY to Rs854.85m.
During the period under review, other income shrank 34.4% to stand at Rs1.31bn in FY24 as compared to Rs2bn in SPLY.
The company’s finance cost surged by 67.8% and stood at Rs7.38bn as compared to Rs4.4bn in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs537.46m against the Rs106.66m paid in the corresponding period of last year, depicting a rise of 403.9%.
Meanwhile, the Final and Minimum tax that the company had to bear stood at over Rs1bn.
In summary, while the company received a positive response on the sales side, it failed to capitalize on this success due to uncontrolled and significant growth in expenses.
| Unconsolidated (un-audited) Financial Results for the year ended June 30, 2024 (Rupees in ‘000) | |||
|---|---|---|---|
| Jun 24 | Jun 23 | % Change | |
| Operating revenue | 108,887,024 | 88,905,796 | 22.47% |
| Cost of services | (84,865,314) | (70,473,695) | 20.42% |
| Gross Profit/ (loss) | 24,021,711 | 18,432,100 | 30.33% |
| Administrative Expenses | (1,759,824) | (1,048,236) | 67.88% |
| Selling And Distribution Expenses | (8,281,766) | (7,053,585) | 17.41% |
| Share of profit from associated company-net | 626,505 | 428,076 | 46.35% |
| Other Income | 1,308,843 | 1,995,431 | -34.41% |
| Other Operating Expenses | (854,853) | (822,860) | 3.89% |
| Finance Cost | (7,384,155) | (4,399,444) | 67.84% |
| Levies- Final and Minimum tax | (1,006,949) | (1,043,138) | -3.47% |
| Profit/ (loss) before income tax | 6,669,511 | 6,488,343 | 2.79% |
| Taxation | (537,462) | (106,659) | 403.91% |
| Net profit/ (loss) for the period | 6,132,050 | 6,381,685 | -3.91% |
| Basic earnings/ (loss) per share | 92.41 | 96.17 | – |
Amount in thousand except for EPS
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