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MUGHAL declares Rs3.20 DPS despite a 36% drop in profits for FY23

MUGHAL bolsters portfolio with Mughal Energy acquisition
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September 22, 2023 (MLN):  Mughal Iron and Steel Industries Limited (PSX: MUGHAL) has reported a profit of Rs3.48 billion [EPS: Rs10.37] for the fiscal year 2023, which reflects a decline of 35.68% YoY compared to the Rs5.41bn [EPS: Rs16.12] profit recorded in the same period last year (SPLY), as revealed in the company's filing on PSX today.

Along with the FY23 financial results, the board of directors of MUGHAL has also announced a final cash dividend for the year ended June 30, 2023, at Rs3.20 per share i.e. 32%.

Going by the results, the company's top line inched up by 1.87% YoY to Rs67.39bn as compared to Rs66.15bn in SPLY.

The cost of sales rose by 3.02% YoY, higher than proportionate to sales decline, which worsened the gross profit by 4.51% YoY to Rs9.67bn in FY23.

On the expense side, the company observed a decrease in Sales and marketing expenses by 36.84% YoY and other expenses by 33.63% YoY to clock in at Rs155.13 million and Rs353.85m respectively during the review period.

Similarly, MUGHGAL's administrative expenses also went down by 3.24% to Rs682.09m in FY23 compared to Rs704.94m in FY22.

During the review period, the company incurred an allowance for expected credit losses worth RsRs34.44m against an allowance of Rs33.48m in SPLY, reflecting an increase of 2.89% YoY.

Going forward, MUGHAL's other income soared by 51.87% YoY to stand at Rs324.06m in FY23 as compared to Rs213.38m in SPLY.

The company’s finance costs went up by 68.69% YoY and stood at Rs4.42bn as compared to Rs2.62bn in FY22, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs865.91m against the Rs791.02m paid in the corresponding period of last year, depicting a decrease of 9.47% YoY.

Financial Results for the year ended 30 June, 2023
  June  23 June 22 % Change
Sales 67,390,170,763 66,152,807,655 1.87%
Cost of sales (57,719,142,873) (56,024,920,076) 3.02%
Gross Profit 9,671,027,890 10,127,887,579 -4.51%
Sales and marketing expenses (155,129,806) (245,614,961) -36.84%
Administrative expenses (682,086,170) (704,940,843) -3.24%
Allowance for expected credit losses (34,444,853) (33,476,039) 2.89%
Other Income 324,057,598 213,380,851 51.87%
Other expenses (353,845,442) (533,107,437) -33.63%
Finance cost (4,423,182,001) (2,622,145,797) 68.69%
Profit Before Taxation 4,346,397,216 6,201,983,353 -29.92%
Taxation (865,912,425) (791,024,212) 9.47%
Net profit for the period 3,480,484,791 5,410,959,141 -35.68%
Basic and diluted earnings/ (loss) per share  10.37 16.12

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Posted on: 2023-09-22T15:19:35+05:00