February 24, 2022 (MLN): The profitability of Kohinoor Textile Mills (KTML) has declined by 33.6% YoY to stand at Rs3.24 billion for the half-year ended on December 31, 2022, compared to Rs4.88bn earned in 1HFY21, the company’s filing on PSX showed on Thursday.
In conjunction with financial results, the company offered a final cash dividend for the quarter ended December 31, 2021, at Re1 per share i.e., 10%.
The substantial drop in profitability is attributed to the notable decline in other income.
During the period under review, the topline went up by around 33% YoY to Rs40.59bn on an account of higher growth in sales volume. Despite a 20% YoY increase in the cost of sales, this substantial increase in topline expanded the gross margin from 21% to 29% during FY22.
On the cost side, the distribution cost jumped by 60% YoY to stand at Rs1.4bn while administrative expenses moved up 6% YoY to stand at Rs866 million. In addition, the finance cost of the company has inched up by 6.2% YoY owing to monetary tightening by SBP.
Meanwhile, the other income decreased substantially by around 91% YoY to peg at Rs255mn in 1HFY22.
However, the company booked a tax expense of Rs1.46bn, up by 34% YoY during the review period.
|
Consolidated Financial Results for the half-year ended December 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
Dec-21 |
Dec-20 |
% Change |
|
|
Revenue |
40,596,404 |
30,546,221 |
32.9% |
|
Cost of sales |
(28,974,399) |
(24,147,605) |
20.0% |
|
Gross profit |
11,622,005 |
6,398,616 |
81.6% |
|
Distribution cost |
(1,482,160) |
(925,883) |
60.1% |
|
Administrative expenses |
(866,705) |
(817,153) |
6.1% |
|
Other expenses |
(3,652,338) |
(360,788) |
912.3% |
|
(6,001,203) |
(2,103,824) |
185.3% |
|
|
5,620,802 |
4,294,792 |
30.9% |
|
|
Other income |
255,005 |
2,782,784 |
-90.8% |
|
Profit from operations |
5,875,807 |
7,077,576 |
-17.0% |
|
Finance cost |
(1,169,027) |
(1,100,669) |
6.2% |
|
Profit before taxation |
4,706,780 |
5,976,907 |
-21.3% |
|
Taxation |
(1,461,735) |
(1,089,735) |
34.1% |
|
Profit after taxation |
3,245,045 |
4,887,172 |
-33.6% |
|
Earnings per share – Basic and Diluted (Rupees) |
7.9 |
12.51 |
-36.9% |
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