Non-core income causes Dawood Hercules’ half yearly profits to skyrocket

Dawood Hercules Corporation Limited’s half yearly profits for the period ended on June 30th 2018, grew by more than three times as the company recorded an extraordinary rise of 231% in profits.

The company conducted its Board of Directors meeting on August 27th 2018, during which, the board finalized its financial earnings for the period and compared it to the earnings made during the half year period, ended on June 30th 2017.

Dawood Hercules experienced 37% growth in Net sales, leading to 48% rise in gross profits.

Moreover, other income shot up by 198%, and while other operating expenses increased by the same percentage as well, it remained insignificant in terms of value, as compared to other income.

Overall profits for the period increased from Rs.6.5 million to Rs.21.5 million on year-on-year basis, whereas basic and diluted earnings per share witnessed a growth of 970% as it went up from Rs.2.47 per share to Rs.26.45 per share.

Other than this, the company further recommended an interim cash dividend for the quarter ended at Rs.3 per share that is 30%

Financial Results for the half year ended June 30th 2018 (rupees)

 

Jun-18

Jun-17

% Change

Net sales

                                                   71,733,077

                                                   52,241,332

37.31%

Cost of sales

                                                (49,908,340)

                                                (37,566,034)

32.85%

Gross profit

                                                   21,824,737

                                                   14,675,298

48.72%

Selling and distribution expenses

                                                   (3,564,360)

                                                   (3,463,816)

2.90%

Administrative expenses

                                                   (2,138,586)

                                                   (1,905,187)

12.25%

Other income

                                                   16,767,077

                                                     5,618,426

198.43%

Other operating expenses

                                                   (2,260,049)

                                                      (756,690)

198.68%

Finance costs

                                                   (2,830,979)

                                                   (2,808,702)

0.79%

Share of income from associates and Joint ventures

                                                      (501,605)

                                                     1,451,181

 

Profit before taxation

                                                   27,296,235

                                                   12,810,510

113.08%

Taxation

                                                   (5,776,411)

                                                   (6,310,352)

-8.46%

Profits for the period

                                                   21,519,824

                                                     6,500,158

231.07%

Basic and diluted earnings per share

                                                             26.45

                                                                2.47

970.85%

 

Posted on: 2018-08-28T10:50:00+05:00

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