October 24, 2018 (MLN): Millat Tractors Limited’s profits for the quarter ended 30th September 2018 demonstrated a plunge of 5.08%, primarily due to a considerable drop in the company’s non-core income and increase in income taxes.
According to the notification issued to PSX, the top-line earnings reported a mere growth of 6.9% i.e. Rs 645 million, whereas the cost of sales grew by 9.03% i.e. Rs. 631 million, the combined effect of which caused the gross profit to change by just 0.57%
The Distribution expenses and Administrative expenses stated an increase of 0.365 and 3.45% respectively, whereas other operating expenses declined by 3.84%.
However, it was the company’s non-core income that caused most of the damage as it fell by 19.16% i.e. Rs. 26 million. Increase in Finance cost by 124.77% further eroded the profits of the company.
Similarly, taxes increased by approximately 8.99%, causing the profitability of the company to nose-dive by 5.08% i.e. Rs. 70 million.
The Earnings per share for the company for the quarter ended 30th September 2018 were stated at 29.66, 5.09% down as compared to corresponding period last year.
Profit and loss account for the quarter ended September 30th 2018 (Rupees’000) |
|||
---|---|---|---|
|
Sep-18 |
Sep-17 |
% Change |
Sales – net |
9,995,379 |
9,350,122 |
6.90% |
Cost of sales |
-7,627,119 |
-6,995,350 |
9.03% |
Gross profit |
2,368,260 |
2,354,772 |
0.57% |
Distribution and marketing expenses |
-204,614 |
-203,870 |
0.36% |
Administrative expenses |
-202,436 |
-195,691 |
3.45% |
Other operating expenses |
-141,969 |
-147,633 |
-3.84% |
Other income |
111,585 |
138,032 |
-19.16% |
Finance cost |
-9,726 |
-4,327 |
124.77% |
Profit before taxation |
1,921,100 |
1,941,283 |
-1.04% |
Taxation |
-607,254 |
-557,176 |
8.99% |
Profit after tax for the period |
1,313,846 |
1,384,107 |
-5.08% |
Earnings per share – basic and diluted |
29.66 |
31.25 |
-5.09% |
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