Wednesday, August 17, 2022
HomeEconomyKohinoor Textile's non-core income weighs down annual profits while reduced taxation dim...

Kohinoor Textile’s non-core income weighs down annual profits while reduced taxation dim the effect

September 19, 2018 (MLN): The consolidated financial results of Kohinoor Textile Mills Limited (KTML) show that the company's non-core income weighed down annual profits, while reduced tax provisions attempted to compensate for the loss. KTML suffered 21% decline in annual profits for the year ended June 30th 2018, mainly due to a substantial drop in non-core income.

The company’s Board of Directors meeting took place yesterday where the financial earnings for the year were reviewed.

According to the consolidated earnings report issued to PSX earlier today, Kohinoor Textile Mills’ revenue collection surged by 5.4%, however a greater percentage increase in cost of sales caused gross profits drop by around 8%.

More notably, the company’s non-core income dropped by around 73%, from 2.3 billion to Rs.621.7 million, YoY. Due to this significant fall, operating profits reduced by around 23%.

Moreover, Kohinoor bore 164% higher finance costs, as compared to the prior year, leading to 31% drop in pre-tax profits.

However, since the taxation reduced by half, the company’s overall profits for the year dropped by a smaller margin of 21%, as they came down from Rs.7.3 billion to Rs.5.7 billion YoY.

Earnings per share (basic and diluted) also suffered a decline of 27%, dropping from Rs.16.38 per share, to Rs.11.95 per share YoY.

Apart from this, a final cash dividend at Rs.1 per share i.e. 10%, was recommended by the board of directors, in addition to the interim dividend already paid at Rs.1.25 per share, i.e. 12.5%.

The board further approved investment up to Rs.1, 000 million as loans/advances to Maple Leaf Cement Factory Limited (MLCF), a subsidiary company of KTML, to meet the working capital requirements of MLCF.

Consolidated Financial Results for the Year Ended June 30th 2018 ('000 Rupees)

 

Jun-18

Jun-17

% Change

Revenue

                               43,467,343

                               41,247,500

5.4%

Cost of sales

                             (32,167,468)

                             (28,992,301)

11.0%

Gross profit

                               11,299,875

                               12,255,199

-7.8%

Distribution cost

                               (1,725,281)

                               (1,813,476)

-4.9%

Administrative expenses

                               (1,335,943)

                               (1,305,956)

2.3%

Other expenses

                                   (591,850)

                                   (700,974)

-15.6%

 

                               (3,653,074)

                               (3,820,406)

-4.4%

 

                                  7,646,801

                                  8,434,793

-9.3%

Other income

                                     621,734

                                  2,277,360

-72.7%

Profit from operations

                                  8,268,535

                               10,712,153

-22.8%

Finance cost

                               (1,167,391)

                                   (441,964)

164.1%

Profit before taxation

                                  7,101,144

                               10,270,189

-30.9%

Taxation

                               (1,384,635)

                               (3,018,385)

-54.1%

Profit after taxation

                                  5,716,509

                                  7,251,804

-21.2%

Earnings per share – Basic and Diluted (Rupees)

                                          11.95

                                          16.38

-27.0%

 

Copyright Mettis Link News

Posted on: 2018-09-19T10:08:00+05:00

23186

RELATED ARTICLES
- Advertisment -

Most Popular