Pak Elektron sees 97.6% surge in Q2 earnings

August 29, 2024 (MLN): Pak Elektron Limited (PSX: PAEL) recorded an increase of 97.6% YoY in its earnings for Q2 CY24, with the company's after-tax profits rising to Rs970.57 million [EPS: Rs1.12], compared to a profit of Rs491.19m [EPS: Rs0.56] in the same quarter last year.

According to the results, the company's top line increased by 38.1% to Rs17.37bn compared to Rs12.58bn in SPLY.

The cost of sales rose by 38.7% but the change was less than proportionate to sales rise, which improved the gross profit by 36.3% to Rs4.62bn in Q2 2024.

Furthermore, PAEL received a favorable pump through its other income, rising by 35.4% to stand at Rs34.73m in Q2 2024 as compared to Rs25.65m in SPLY.

On the expense side, the company's administrative expenses rose 18.1% YoY to Rs652.11m, selling and distribution expenses rose 39.9% YoY to Rs1.24bn, and other operating costs rose 88.3% YoY to Rs117.41m.

The company’s finance cost ticked higher and stood at Rs1.1bn as compared to Rs1.09bn in SPLY.

On the tax front, the company paid a higher tax worth Rs573.7m against the Rs332.97m paid in the corresponding period of last year, depicting an increase of 72.3%.

Despite higher expenses, finance costs, and taxation, PAEL reported a substantial increase in profit, driven by significant sales growth and additional income.

Amount in thousand except for EPS

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