September 25, 2020 (MLN): Ismail Industries Limited has suffered a 33% decline in earnings as the profits for the year ended June 30, 2020, stood at Rs. 423.7 million as compared to Rs. 631.3 million recorded last year.
The Earnings per share of the company was stated at Rs. 8.85, i.e. around 22% lower than that of the previous year.
The Board of Directors of the company also announced a final Cash Dividend for the year at Rs. 3 per share i.e. 30%. This is in addition to the interim cash dividend already paid at Re. 0.50 per share i.e. 5%.
According to the company’s financial report, the sales revenue saw a growth of almost 11%, whereas the cost of sales increased by 11.3%, causing the gross profit to surge by 8.4%.
The major expense heads i.e. Selling & Distribution and Administration costs saw an increase of 26.4% and 18%, respectively.
The biggest highlight of the year was the 9.84x increase in the share of profit from associated companies, which translated into a growth of Rs. 446.6 million.
While there was an increase in finance cost by 27%, the company got some respite from a decline in the income tax expense by 11%.
Consolidated Financial Results for the year ended June 30, 2020 (Rupees) | |||
|---|---|---|---|
Jun-20 | Jun-19 | % Change | |
Sales | 41,034,240,755 | 37,117,261,720 | 10.6% |
Sales returns, discounts, and direct expense | (2,009,975,223) | (1,791,242,484) | 12.2% |
Export Rebate | 10,589,965 | 9,605,597 | 10.2% |
Sales tax | (5,610,093,075) | (5,148,620,097) | 9.0% |
Sales-net | 33,424,762,422 | 30,187,004,736 | 10.7% |
Cost of sales | (26,592,382,801) | (23,881,824,697) | 11.3% |
Gross Profit | 6,832,379,621 | 6,305,180,039 | 8.4% |
Selling and distribution expense | (4,780,161,529) | (3,780,870,997) | 26.4% |
Administrative expenses | (692,201,269) | (586,593,213) | 18.0% |
Other expenses | (182,184,602) | (172,282,473) | 5.7% |
Other income | 356,159,161 | 213,759,588 | 66.6% |
Finance cost | (1,211,530,291) | (956,336,302) | 26.7% |
Share of profit from associated companies | 491,972,141 | 45,385,014 | 984.0% |
Profit before taxation | 814,433,232 | 1,068,241,656 | -23.8% |
Taxation | (390,737,914) | (436,942,413) | -10.6% |
Profit after taxation | 423,695,318 | 631,299,243 | -32.9% |
Earnings per share | 8.85 | 11.4 | -22.4% |
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