February 21, 2020 (MLN): Mughal Iron and Steel Industries Limited has reported net profits of Rs. 366 million for the half-year ended December 31, 2019, i.e. 48.4% lower than the earnings reported in the same period of last year.
The decline in bottom-line earnings ensued after the company failed to lift its sales revenue, which remained almost flat during the period.
Even though there was a 1.52x increase in non-core income, the 99% increase in finance costs prevented the financial position of the company from showing improvement.
Nonetheless, the company received tax rebates amounting to Rs. 24.2 million, which provided some respite to the bottom-line earnings.
Besides the financial performance, the company has informed the market participants that it has commenced export of copper ingots, which is another strategic step towards further diversification of product and market portfolio.
The Company has extended its operations through penetration into the south market as well and is actively developing its clientele network in the region.
Profit and Loss Account for the half-year ended December 31, 2019 (Rupees) | |||
|---|---|---|---|
Dec-19 | Dec-18 | % Change | |
Sales | 14,078,665,740 | 14,076,277,919 | 0.02% |
Cost of sales | (12,726,234,695) | (12,461,689,439) | 2.12% |
Gross profit | 1,352,431,045 | 1,614,588,480 | -16.24% |
Sales and marketing expenses | (64,272,206) | (97,757,626) | -34.25% |
Administrative expenses | (196,381,023) | (170,611,176) | 15.10% |
Other charges | (27,970,876) | (65,136,480) | -57.06% |
Other income | 25,083,054 | 9,949,323 | 152.11% |
Finance cost | (746,618,101) | (373,912,448) | 99.68% |
Profit before taxation | 342,271,893 | 917,120,073 | -62.68% |
Taxation | 24,214,666 | (204,120,631) | |
Profit after taxation | 366,486,559 | 712,999,442 | -48.60% |
Basic and diluted earnings per share | 1.46 | 2.83 | -48.41% |
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