Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

Trending :

Millat Tractors profits deteriorate by 5.08% following increased taxes

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

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%

Copyright Mettis Link News

Posted on: 2018-10-24T14:54:00+05:00

23844