March 27, 2020 (MLN): Pak Elektron Limited (PEL), which is currently operating in two main division; the Power Division and Appliances Division, has announced its financial results today for the year 2019, as per which the company’s net profits dipped by 36% YoY to Rs 878 million from Rs 1.3 billion earned in 2018.
The has reflected in the company’s earnings per share which exhibited a decline from Rs 2.67 per share to Rs 1.68 per share.
The decline in profitability was attributable to low volumetric sales, higher input cost coupled with lower pricing power during the year.
As a result, the company’s gross margins went down by 100 bps from 25% to 24%.
During the year, the rise in the average cost of borrowing in line with monetary tightening and surge in admin expenses by 14% YoY to Rs 1.23 billion further eroded company’s profitability.
However, the company enjoyed a reduction in tax payments by Rs 183.4 million, the impact is not enough to lift the company’s profitability up.
Alongside financial results, it is worthwhile to mention that the Board of Directors of the company in its recent meeting has approved the amalgamation of its subsidiary PEL Marketing (Private) Limited into PEL.
|
Consolidated Financial Results for the Year ended December 31st, 2019 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-19 |
Dec-18 |
% Change |
|
GROSS SALES |
37,621,269 |
38,990,247 |
-3.51% |
|
SALES TAX AND DISCOUNTS |
(9,721,351) |
(10,544,936) |
-7.81% |
|
NET SALES |
27,899,918 |
28,445,311 |
-1.92% |
|
COST OF SALES |
(21,326,893) |
(21,448,040) |
-0.56% |
|
GROSS PROFIT |
6,573,025 |
6,997,271 |
-6.06% |
|
OTHER OPERATING INCOME |
33,887 |
17,977 |
88.50% |
|
DISTRIBUTION COST |
(1,956,380) |
(2,207,445) |
-11.37% |
|
ADMINISTRATIVE EXPENSES |
(1,234,417) |
(1,081,326) |
14.16% |
|
OTHER OPERATING EXPENSES |
(52,217) |
(63,376) |
-17.61% |
|
FINANCE COST |
(2,480,088) |
(2,103,343) |
17.91% |
|
SHARE OF PROFIT/(LOSS) OF ASSOCIATE |
(2,806) |
(2,456) |
14.25% |
|
PROFIT BEFORE TAXATION |
881,004 |
1,557,302 |
-43.43% |
|
PROVISION FOR TAXATION |
(2,411) |
(185,833) |
-98.70% |
|
PROFIT AFTER TAXATION |
878,593 |
1,371,469 |
-35.94% |
|
EARNINGS PER SHARE |
1.68 |
2.67 |
-37.08% |
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