Kohinoor Textile’s profits plummet by 25% as cost of sales soar

 October 24, 2018 (MLN): Kohinoor Textile Mills reported a decline of 25.2% in its profits for the quarter ended 30th September 2018 due to augmentation in cost of sales of about 9.8% (Rs.714 million) as compared to the corresponding period last year.

According to the financial results announced by the company, administrative cost increased by 15.7%, distribution cost increased by 33.5% and finance cost surged by 99.6%, which contributed to further decline in company’s profitability.

Although, the company reported a decline in other expenses of about 21% and taxes of about 54% but its impact failed to lift the profits of the company upward.

The Earnings per share of the company exhibited a decline of around 18.9% from Rs 3.12 per share to Rs 2.53 per share.

 

 

Consolidated Financial Results for the Quarter Ended September 30th 2018 ('000 Rupees)

 

Sep-18

Sep-17

% Change

Revenue

                  10,562,235

                 10,111,971

4.5%

Cost of sales

                  (8,027,859)

                 (7,313,668)

9.8%

Gross profit

                    2,534,376

                   2,798,303

-9.4%

Distribution cost

                      (505,985)

                    (379,147)

33.5%

Administrative expenses

                      (344,423)

                    (297,683)

15.7%

Other expenses

                      (110,885)

                    (140,546)

-21.1%

 

                      (961,293)

                    (817,376)

17.6%

 

                    1,573,083

                   1,980,927

-20.6%

Other income

                        142,929

                       166,118

-14.0%

Profit from operations

                    1,716,012

                   2,147,045

-20.1%

Finance cost

                      (417,940)

                    (209,347)

99.6%

Profit before taxation

                    1,298,072

                   1,937,698

-33.0%

Taxation

                      (241,322)

                    (525,064)

-54.0%

Profit after taxation

                    1,056,750

                   1,412,634

-25.2%

Earnings per share – Basic and Diluted (Rupees)

                               2.53

                              3.12

-18.9%

 

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Posted on: 2018-10-25T11:32:00+05:00

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