Pakistan Services Ltd incur losses of Rs332 mln for 1QFY19

October 26, 2018 (MLN): Pakistan Services Limited (PSEL) have stated losses of Rs. 332 million for the quarter ended 30th September 2018. The sharp losses was clearly attributed to the company’s failure to increase its top-line earnings and control its cost of sales.

According to the notification issued to PSX, the company’s top-line earnings reported a decline of 8.22%, whereas the cost of sales increased by 11.9%, the duo impact of which led to the gross profits decreasing by 31.27%.

Despite the presence of positive indicators including the non-core income increasing by a sharp margin of 147.38% and net finance cost decreasing by 1.22%, their impact was, nevertheless, overshadowed by increased Administrative expenses by 7.33% and decreased Share of profits in equity by 80.85%.

To worsen things up, the income tax expenses reported an increase of 33.94%, ultimately leading to the conversion of company’s profits for the quarter ended last year, into losses for the quarter ended this year.   

Profit and loss account for the quarter ended September 30th 2018 (Rupees’000)

 

Sep-18

Sep-17

% Change

Revenue – net

2,318,334

2,526,005

-8.22%

Cost of sales and services

-1,509,038

-1,348,564

11.90%

Gross profit

809,296

1,177,441

-31.27%

Other income

69,312

28,018

147.38%

Administrative expenses

-736,495

-686,180

7.33%

Net finance cost

-351,624

-355,984

-1.22%

Share of profit in equity accounted investments

3,738

19,521

-80.85%

(Loss) / Profit before taxation

-205,773

182,816

 

Income tax expense

-126,361

-94,345

33.94%

(Loss) / Profit for the period

-332,134

88,471

 

Copyright Mettis Link News

Posted on: 2018-10-26T10:38:00+05:00

23894