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Panther Tyres yearly earnings exceed expectations

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August 2, 2021 (MLN): Panther Tyres Limited (Panther) has unveiled its financial results for the year ended June 30, 2021, wherein the company has earned net profits of a Rs851million (EPS: Rs7.06), showing a robust growth of 3.4x YoY when compared to net profits of Rs251mn (EPS: Rs2.52reported in the same period last year.

The earnings came in higher than expectations as they jumped by 2.8 times YoY.  At the time of book building, the company projected that its earnings would increase by 5.3% in FY21.

Alongside financial results, the board of directors has announced a final cash dividend for the year ended June 30, 2021, at Rs2 per share i.e., 20%. Moreover, it has recommended issuing Bonus Shares in the proportion of 20 shares for every 100 shares held i.e., 20%.

During the period under review, net sales revenue grew by around 40% YoY to Rs16bn due to noteworthy growth in demand for tyres and double-digit growth in sales volumes of two-wheelers/three-wheelers and tractors, the research report by Arif Habib Limited highlighted. As a result, the gross profits soared by 47% YoY to Rs2.47bn despite the appreciation of PKR and increase in the cost of sales by 38.6% YoY amid an upsurge in prices of raw materials.

The overall expenses of the company increased: selling and distribution cost by 40% YoY, administrative cost by 13.5% YoY and other operating costs by 3x YoY during FY21.

The finance cost plunged by 45% YoY due to the low-interest rate regime, resulting in a healthy bottom line.

Among other line items, the other income witnessed a more than six-fold increase to Rs41mn. Moreover, the effective tax rate improved to 30% as compared to 34% in FY20.

Financial Results for the year ended June 30, 2021 (Rupees)

 

Jun-21

Jun-20

% Change

Sales-Net

 16,202,066,691

 11,584,801,235

39.86%

Cost of sales

 (13,731,305,474)

 (9,907,749,210)

38.59%

Gross profit

 2,470,761,217

 1,677,052,025

47.33%

Selling and distribution expenses

 (581,071,639)

 (414,579,319)

40.16%

Administrative and general expenses

 (296,325,472)

 (261,142,409)

13.47%

Other operating expenses

 (86,511,879)

 (29,495,739)

193.30%

Other operating income

 41,604,078

 6,397,395

550.33%

Profit from operations

 1,548,456,305

 978,231,953

58.29%

Finance costs

 (328,191,986)

 (598,395,225)

-45.15%

Profit before taxation

 1,220,264,319

 379,836,728

221.26%

Taxation

 (369,001,909)

 (128,009,620)

188.26%

Profit after taxation

 851,262,410

 251,827,108

238.03%

Earnings per share – basic and diluted

 7.06

 2.52

180.16%

 

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Posted on: 2021-08-02T11:40:00+05:00

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