Pakistan National Shipping profit surges over two times

October 07, 2024 (MLN): Pakistan National Shipping Corporation Limited (PSX: PNSC) recorded an increase of 120.8% in its profitability, recording a net profit of Rs1.91 billion [EPS: Rs14.47] in the quarter ending June 2024.

That compares to a profit of Rs865.55 million [EPS: Rs6.55] earned in the same period last year (SPLY). For the full financial year 2024, the company posted a net profit of Rs4.98bn as against Rs4.83bn last year.

Along with the results, the company announced a final cash dividend of Rs25 per share i.e. 250%, and to issue bonus shares in proportion of 50 shares for every 100 held i.e. 50%.

Going by the quarterly results, the company's revenue increased 24.8% to Rs2.04bn as compared to Rs1.64bn in FY23.

However, the cost of sales surged by 117.8%, worsening the gross profit by 67.9% to Rs263.03m in Q4 FY24.

The gross margins fell substantially to 12.9% as compared to 50.1% in SPLY.

During the period under review, other income grew 78.4% to Rs2.63bn in Q4 FY24 as compared to Rs1.48bn in SPLY.

On the expense side, the company's administrative expenses rose 59.4% from a year ago to Rs135.7m, while other operating expenses rose 152.2% to Rs307.9m.

The company’s finance cost fell 37.3% and stood at Rs253.12m as compared to Rs403.59m in SPLY.

On the tax front, the company paid a lower tax worth Rs434.56m against the Rs723.72m paid in the corresponding period of last year, depicting a decrease of 40.0%.

This translates to an effective tax rate of 18.5% as compared to 45.5% in SPLY.

Amount in thousand except for EPS

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