March 29, 2022 (MLN): Pak Elektron Limited's (PSX: PAEL) full-year 2021 earnings clocked in at Rs1.59 billion (EPS: Rs3.11), up by an impressive 8.6x YoY from Rs223.8 million in the previous year.
The remarkable growth in the company’s bottom line is mainly attributable to higher revenues led by growing demand in both Appliances and Power division sectors and Strategic Partnership with Panasonic for products development and technology transfers.
The net revenues of the company during the period jumped notably by 49% YoY to Rs42.8bn amid an increase in volumetric sales of both (appliance and power) divisions, compared to Rs28.8bn in CY20.
On the margins side, there was a slight decline due to the price hike of imported inputs due to global commodity price increase and weakening of Pak Rupee against USD. However, cost-effective product designs and fixed cost absorption kept the decline in check as gross margins went down by 1ppt to 21% from 22% in the previous year.
On the expense side, distribution costs went up by 18.4% YoY as spending on promotions and advertising increased. Administrative expenses also went up by 18.4%, while other operating expenses surged by a whopping 4x YoY.
Finance costs declined by marginally 1% YoY due to lower interest rates and short-term borrowings.
On the taxation front, the effective tax rate of the company clocked in at 28% in CY21 vs. 37% in CY20.
At the time of reporting this, the stock of PAEL is trading at a price of Rs16.14, up by 6.25% or Rs0.95 DoD.
|
Consolidated Financial Results for the Year ended December 31st 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
REVENUE |
55,367,475 |
37,988,168 |
45.75% |
|
SALES TAX, EXCISE DUTY AND DISCOUNTS |
(12,480,111) |
(9,189,150) |
35.81% |
|
NET REVENUE |
42,887,364 |
28,799,018 |
48.92% |
|
COST OF SALES |
(33,819,712) |
(22,397,517) |
51.00% |
|
GROSS PROFIT |
9,067,652 |
6,401,501 |
41.65% |
|
OTHER OPERATING INCOME |
38,595 |
36,099 |
6.91% |
|
DISTRIBUTION COST |
(2,779,561) |
(2,346,473) |
18.46% |
|
ADMINISTRATIVE EXPENSES |
(1,725,363) |
(1,457,070) |
18.41% |
|
OTHER OPERATING EXPENSES |
(205,915) |
(51,283) |
301.53% |
|
IMPAIRMENT ALLOWANCE FOR EXPECTED CREDIT LOSS |
(14,356) |
(26,273) |
-45.36% |
|
FINANCE COST |
(2,173,765) |
(2,198,358) |
-1.12% |
|
SHARE OF PROFIT/(LOSS) OF ASSOCIATE |
(909) |
(2,203) |
-58.74% |
|
PROFIT BEFORE TAXATION |
2,206,378 |
355,940 |
519.87% |
|
PROVISION FOR TAXATION |
(615,302) |
(132,091) |
365.82% |
|
PROFIT AFTER TAXATION |
1,591,076 |
223,849 |
610.78% |
|
EARNINGS PER SHARE |
3.11 |
0.36 |
763.89% |
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