October 27, 2023 (MLN): Mughal Iron and Steel Industries Limited (PSX: MUGHAL) has revealed its financial results for the 3QCY23, wherein the profit after tax fell by around 41% YoY to stand at Rs515.06m [EPS: 1.53], compared to the profit of Rs871.52m [EPS: 2.6] reported in 3QCY22.
The profit and loss statement shows that the company's top line grew by 49.45% YoY to Rs21.03 billion as compared to Rs14.07bn in SPLY.
Accordingly, the cost of sales also rose by 54.43% YoY but as the sales grew by a greater proportion, the gross profit improved by 20.79% YoY to Rs2.52bn in 3QCY23.
On the expense side, the company observed a rise in Sales and marketing expenses by 18.17% YoY and administrative expenses by 38.72% YoY to clock in at Rs71.96m and Rs203.48m respectively during the review period.
Conversely, the company's other charges were reduced by 33.6% YoY to 59.811m in 3QCY23.
The income statement further reveals that MUGHAL's other income decreased by 50.09% YoY to stand at Rs51.93m in 3QCY23 as compared to Rs104.04m in SPLY, having another adverse impact on profitability.
With respect to borrowing, the company's finance costs expanded by 79.60% YoY and stood at Rs1.58bn as compared to Rs881.61m in 3QCY22, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs207.11m against the Rs159.7m paid in the corresponding period of last year, depicting an increase of 29.69% YoY.
| Consolidated Condensed Interim Financial Results for the Quarter ended 30 September 2023 | |||
|---|---|---|---|
| Sep 23 | Sep 22 | % Change | |
| Sales | 21,032,129,421 | 14,073,291,750 | 49.45% |
| Cost of sales | (18,514,429,753) | (11,988,851,901) | 54.43% |
| Gross Profit | 2,517,699,668 | 2,084,439,849 | 20.79% |
| Sales and marketing expenses | (71,962,902) | (60,895,295) | 18.17% |
| Administrative expenses | (203,477,700) | (146,687,073) | 38.72% |
| Allowance for expected credit losses (reversal) | 71,203,673 | 22,010,878 | 223.49% |
| Other Income | 51,929,954 | 104,039,463 | -50.09% |
| Other charges | (59,811,490) | (90,079,070) | -33.60% |
| Finance cost | (1,583,410,519) | (881,610,556) | 79.60% |
| Profit before tax | 722,170,684 | 1,031,218,196 | -29.97% |
| Taxation | (207,114,185) | (159,700,436) | 29.69% |
| Net profit for the period | 515,056,499 | 871,517,760 | -40.90% |
| Basic and diluted earnings/ (loss) per share | 1.53 | 2.60 | – |
MUGHAL and KSE-100 YTD Performance
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Posted on: 2023-10-27T15:55:50+05:00
