August 26, 2021 (MLN): Pak Elektron Limited (PAEL) has reported net profits of Rs1bn (EPS: Rs2.02) for 1HCY21, as against the net loss of Rs425.8mn (LPS: Rs0.90) in the corresponding period last year.
The turnaround in earnings 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 69% YoY to Rs22.7bn amid an increase in volumetric sales of both (appliance and power) divisions, compared to Rs13.4bn in 1HCY20.
The cost of goods sold (COGS) also increased significantly by 70% YoY from Rs10.5bn to Rs17.9bn can be due to PKR fluctuations as the Company’s major portion of COGS consists of imported materials which give the company exposure to the Exchange rate fluctuation risks. As a result, the gross margin shrank to 21% from 22% in the same period last year.
On the expenses side, PAEL’s Admin expense increased by 9% YoY to Rs844.8mn due to the inflationary environment and its Distribution cost also jumped to Rs1.48bn, up by 20% YoY.
Finance cost declined by 14% YoY due to lower interest rates and retirement in debt borrowing.
On the taxation front, the effective tax rate of the company clocked in at 21% in 1H2021 vs. 17% in 1H2020.
|
Consolidated Financial Results for the Half-Year ended June 30th, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
REVENUE |
30,519,996 |
18,168,597 |
67.98% |
|
SALES TAX, EXCISE DUTY AND DISCOUNTS |
(7,735,247) |
(4,698,399) |
64.64% |
|
NET REVENUE |
22,784,749 |
13,470,198 |
69.15% |
|
COST OF SALES |
(17,897,420) |
(10,509,448) |
70.30% |
|
GROSS PROFIT |
4,887,329 |
2,960,750 |
65.07% |
|
OTHER OPERATING INCOME |
18,665 |
12,027 |
55.19% |
|
DISTRIBUTION COST |
(1,481,009) |
(1,230,321) |
20.38% |
|
ADMINISTRATIVE EXPENSES |
(844,805) |
(773,739) |
9.18% |
|
OTHER OPERATING EXPENSES |
(103,844) |
(12,017) |
764.14% |
|
Impairment Allowance for Expected Credit Loss |
(30,129) |
(22,350) |
34.81% |
|
FINANCE COST |
(1,109,617) |
(1,295,833) |
-14.37% |
|
SHARE OF PROFIT/(LOSS) OF ASSOCIATE |
(386) |
(2,066) |
-81.32% |
|
PROFIT BEFORE TAXATION |
1,336,204 |
(363,549) |
|
|
PROVISION FOR TAXATION |
(310,862) |
(62,293) |
399.03% |
|
PROFIT AFTER TAXATION |
1,025,342 |
(425,842) |
|
|
EARNINGS PER SHARE |
2.02 |
(0.90) |
|
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