October 30, 2024 (MLN): NetSol Technologies Limited (PSX: NETSOL) recorded a decrease of 27.5% YoY in its profits, with the company's after-tax profits falling to Rs196.84 million [EPS: Rs2.24] in the quarter ended September 30, 2024.
According to the profit and loss account, the primary reason for falling profits was a 15.8% decline in revenue.
Although the cost of sales also fell, it did so by a smaller amount, resulting in a 28.9% decrease in the company's gross profit, which dropped to Rs640.69m in Q3 CY24.
Accordingly, the gross margins worsened to 33.7% as compared to 40.0% in SPLY.
NETSOL benefited from a significant increase in other income, which rose by 156.6% to reach Rs380.79m in Q3 CY24.
However, the increase in expenses along with the tax expenditure offset these gains, resulting in a decline in profits.
On the expense side, the company's administration expenses rose 7.1% YoY to Rs375.19m, and distribution and selling expenses increased 14.5% YoY to Rs183.98m.
In contrast, other operating expenses decreased by 12.4% YoY to Rs136.16m.
The company’s finance cost shrunk by 13.3% and stood at Rs68.77m as compared to Rs79.31m in SPLY.
On the tax front, the company paid a higher tax worth Rs60.54m against the Rs32.53m paid in the corresponding period of last year, depicting a rise of 86.1%.
| Unconsolidated (un-audited) Financial Results for quarter ended September 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Sep 24 | Sep 23 | % Change | |
| Sales | 1,898,880 | 2,256,098 | -15.83% |
| Cost of sales | (1,258,194) | (1,354,718) | -7.13% |
| Gross Profit/ (loss) | 640,686 | 901,380 | -28.92% |
| Administration expenses | (375,189) | (350,348) | 7.09% |
| Distribution and selling expenses | (183,977) | (160,711) | 14.48% |
| Other Income | 380,786 | 148,401 | 156.59% |
| Other Operating Expenses | (136,156) | (155,342) | -12.35% |
| Financial (charges) / income | (68,765) | (79,309) | -13.29% |
| Profit/ (loss) before taxation | 257,385 | 304,071 | -15.35% |
| Final tax / levies | (60,543) | (32,531) | 86.11% |
| Net profit/ (loss) for the period | 196,842 | 271,540 | -27.51% |
| Basic earnings/ (loss) per share | 2.24 | 3.09 | – |
Amount in thousand except for EPS
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Posted on: 2024-10-30T16:09:56+05:00
