Pak Elektron’s bottom line surges by 26% YoY during CY20

April 5, 2021 (MLN): Pak Elektron Limited (PAEL) has unveiled its financial results for the year ended December 31, 2020.  As per results, the company has posted net profits of Rs 223 million, depicting a significant increase of 26% YoY when compared to net profits of Rs 177 million in the same period last year. 

The basic earnings per share of the company for the year ended December 31, 2020 have been reported Rs 0.36 in comparison to Rs 0.27 during the same period last year.

This increase in earnings seen in the financial results below is a result of higher net revenue. The gross profits of the company surged by 92% YoY, expanding the gross margins from 15% to 22%.

On the cost side, the major highlight is the increase in its major expense heads as distribution cost soared by 2.5xYoY to Rs 2.35 billion. Likewise, administrative costs and other expenses also jumped by 2.4 times YoY and 18%, YoY, respectively, hurting the financial stability of the company.

The other major highlight is the colossal finance cost which increased by around 43% YoY from Rs 1.54 billion to Rs 2.19 billion when compared to the prior year.

Meanwhile,  the company paid a whopping tax amounting to Rs 132 million during CY20 against Rs 33 million paid in the corresponding period last year.

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