Pakistan Cables sees 28% fall in profits

January 25, 2024 (MLN): Pakistan Cables Limited (PSX: PCAL) recorded a fall of 27.79% YoY in its profits in 1HFY24, with the company's after-tax profits declining to Rs217.97 million [EPS: Rs4.4], compared to a profit of Rs301.87m [EPS: Rs6.1] in the same period last year (SPLY).

Going by the results, the company's top line rose by 19.21% YoY to Rs12.89bn as compared to Rs10.81bn in SPLY.

The cost of sales rose by 18.68% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 22.64% YoY to Rs1.79bn in 1HFY24.

During the review period, the company earned an other income of Rs46.71m as compared to Rs67.11m in SPLY.

On the expense side, the company observed an increase in marketing, selling and distribution expenses by 30.27% YoY and other expenses by 13.16% YoY to clock in at Rs498.54m and Rs41.61m respectively during the review period.

Moreover, the company’s finance costs significantly dented the profitability of the company, recording a surge of 91.42% YoY to stand at Rs824.84m as compared to Rs430.9m in 1HFY24, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs67.98m against the Rs162.84m paid in the corresponding period of last year, depicting a fall of 58.25% YoY.

Amount in thousand except for EPS

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