LPL's profit almost doubles to Rs3.25bn in 9MCY23 despite major drop in sales

October 27, 2023 (MLN): Lalpir Power Limited (PSX: LPL) 's profitability rose significantly by 98.26% YoY, clocking in its profit after tax at Rs3.25 billion [EPS: 8.56], compared to the Rs1.64bn [EPS: 4.32] reported in the Same Period Last Year (SPLY).

Going by the results, the company's top line fell by 52.66% YoY to Rs16.56bn as compared to Rs34.98bn in SPLY.

The cost of sales decreased by 61.44% YoY. This decline was more significant than the decrease in sales, leading to a substantial improvement in gross profit by 81.56% YoY, totaling Rs3.9bn in 9MCY23.

On the expense side, the company observed a rise in administrative expenses by 5.66 YoY and other expenses by 19.1% YoY to clock in at Rs151.43m and Rs4.08m respectively during the review period.

During the period under review, other income went significantly down by 85.36% YoY to stand at Rs18.42m in 9MCY23 as compared to Rs125.79m in SPLY.

The company’s finance costs expanded by 5.05% YoY and stood at Rs512.07m as compared to Rs487.45m in 9MCY22, mainly due to higher interest rates.

On the tax front, the company did not incur any income tax expenditure in both 9MCY23 and 9MCY22.

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