PKGP announces Rs3 DPS, earns Rs2.2bn in Q2 CY24

August 28, 2024 (MLN): PAKGEN Power Limited (PSX: PKGP) experienced a rise of 20.1% YoY in its profits, earning a profit after tax of Rs2.15 billion [EPS: Rs5.77], compared to a profit of Rs1.79bn [EPS: Rs4.8] in the same period last year (SPLY).

The Board of Directors (BoD) of the company has recommended an interim cash dividend of Rs3 per share for the half-year ended June 30, 2024.

This is in addition to the first interim cash dividend of Rs2 per share already paid.

Going by the results, the company's top line fell by 53.9% to Rs2.82bn as compared to Rs6.12bn in SPLY.

The cost of sales fell by a greater proportion (82.6%) due to which the gross profit improved by 20.4% to Rs2.05bn in Q2 2024.

The gross margins improved to 72.7% as compared to 27.8% in SPLY.

On the expense side, the company's administrative expenses rose 32.1% YoY to Rs83.44m.

Meanwhile, other operating expenses decreased by 81.8% year-on-year, totaling Rs1m.

During the period under review, other income expanded by 55.5% to stand at Rs304.88m in Q2 2024 as compared to Rs196.02m in SPLY.

The company’s finance cost expanded by 22.8% and stood at Rs8.57m as compared to Rs6.98m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs45.77m against the Rs20.48m paid in the corresponding period of last year, depicting a rise of 123.5%.

In addition to income tax, PKGP faced a final tax burden of Rs69.51m, 346.15% higher compared to that paid in Q2 CY23.

Despite declining sales, PKGP experienced a rise in profit due to a positive gross profit and increased other income.

Amount in thousand except for EPS

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