Packages Limited’s Q3 profit falls over 45%

October 28, 2024 (MLN): Packages Limited (PSX: PKGS) revealed its third-quarter earnings, wherein the profit after tax dropped over 45% to Rs464.66 million [EPS: Rs5.2] compared to the bottom line of Rs847.46m [EPS: Rs9.48] in the same period last year (SPLY).

The company’s operating revenue, which includes dividend and rental income, declined by 19.5% to Rs 1.23 billion compared to Rs 1.52 billion in the same period last year.

According to the profit and loss account, the revenue declined due to a decrease in dividend income, while rental income saw an increase.

On the expense side, PKGS's administrative expenses surged 47.28% to Rs273.05m in Q3 CY24.

During the period under review, other income marked an increase of 91.5% to stand at Rs40.15m in Q3 CY24 as compared to Rs20.97m in SPLY.

In addition, the company also reported an additional Rs8.39m impairment gain on financial assets.

The company’s finance cost deflated by 7.3% and stood at Rs423.58m as compared to Rs456.74m in SPLY.

On the tax front, the company paid a higher tax worth Rs112.95m compared to Rs54.46m paid in the corresponding period of last year, a 107.4% increase.

Consequently, with reduced revenue, higher expenses, and increased tax expenditures, the company’s earnings declined this quarter.

Amount in thousand except for EPS

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