Lower tax provisions pull up Ghani Gases' annual profits

By MG News | September 03, 2018 at 12:09 PM GMT+05:00

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Ghani Gases Limited’s annual pre-tax profits dropped by 24% yet overall profits increased by 2.25% due to lower tax provisions.

In a Board of Directors meeting held on September 1^st 2018, the company’s financial earnings for the year ended June 30^th 2018 were reviewed and a report of the same was issued to PSX, earlier today.

With respect to year-on-year comparison, the company’s gross profits increased by 12%.

However, total expenses went up by 19%, finance cost increased by almost 28% and share of loss from associates increased substantially by 133%.

This led to a 24% drop in pre-tax profits, which dropped from Rs.166.9 million to Rs.126.8 million, YoY.

Fortunately for the company, tax provisions reduced by 97.5% during the period under review, resulting in overall profits to rise by 2.3%, from Rs.122.9 million to Rs.125.7 million.

Apart from this, Ghani Gases’ earnings per share increased from Rs.0.93 per share to Rs.0.95 per share.

Additionally, the company’s Board of Directors recommended issuance of bonus shares in the proportion of 05 ordinary shares against every 100 shares held, that is, 0.5% out of the Share Premium Reserve.

Profit and Loss Account for the Year Ended June 30th 2018 ('000 Rupees)
	Jun-18	Jun-17	% Change
Gross sales - local	2,330,253	2,053,432	13.48%
Sales tax	(281,656)	(248,960)	13.13%
Net sales	2,048,597	1,804,472	13.53%
Cost of sales	(1,409,899)	(1,235,838)	14.08%
Gross profit	638,698	568,634	12.32%
Distribution cost	(229,973)	(179,993)	27.77%
Administrative expenses	(115,969)	(118,076)	-1.78%
Other operating expenses	(29,205)	(16,704)	74.84%
	(375,147)	(314,773)	19.18%
Other income	17,494	22,757	-23.13%
Profit from operations	281,045	276,618	1.60%
Finance cost	(123,489)	(96,516)	27.95%
Share of loss from associate	(30,733)	(13,141)	133.87%
Profit before taxation	126,823	166,961	-24.04%
Taxation	(1,080)	(43,981)	-97.54%
Profit after taxation	125,743	122,980	2.25%
Earnings per share - basic and diluted - (Rupees)	0.95	0.93	2.15%

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