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 |
|
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