PHDL announces 10% DPS despite 8% YoY drop in profit for FY23

September 27, 2023 (MLN): Pakistan Hotels Developers Limited (PSX: PHDL) has reported a profit of Rs44.13 million [EPS: 13.84] for the fiscal year 2023, compared to a profit of Rs47.82m [EPS: 33.31] reported in the Same Period Last Year (SPLY), reflecting a decline of 7.71% YoY.

Along with the financial results for FY23, the Board of Directors (BoD) has recommended a final Cash Dividend for the year ended June 30, 2023, at Rs1 per share i.e. 10%.

Going by the results, the company's top line went up by 20.34% YoY to Rs559.04m as compared to Rs464.55m in SPLY.

Accordingly, the cost of sales also rose by 28.25% YoY but was less than proportionate to sales decline, which improved the gross profit by 11.42% YoY to Rs243.3m in FY23.

On the expense side, PHDL reported a significant increase in Administrative, selling, and general expenses by 19.32% YoY to Rs188.41m compared to Rs157.90m recorded in FY22.

The company also incurred other operating expenses worth Rs1.83m in FY23.

During the review period, other income soared significantly to stand at Rs5.73m in FY23 as compared to Rs0.16m in SPLY.

In FY23, PHDL incurred no finance costs compared to the Rs39m incurred in the previous year (SPLY) due to a lack of external financing.

On the tax front, the company paid a higher tax worth Rs14.68m against the Rs12.77m born in the corresponding period of last year, depicting a fall of 14.96% YoY.

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