August 28, 2024 (MLN): Packages Limited (PSX: PKGS) reported a profit after tax of Rs29.67 million, reversing the loss of Rs114.19 million reported in the same period last year (SPLY).
Going by the results, the company’s operating revenue slid by 61% to Rs690.15m as compared to Rs1.77bn in SPLY.
It is worth noting that PKGS’s operating revenue includes both dividend and rental income.
The decline in revenue was primarily due to a significant drop in dividend income, while rental income remained robust.
During the period under review, other income went down by 40.2% to stand at Rs51.25m in Q2 CY24 as compared to Rs85.73m in SPLY.
This indicates that while PKGS’s revenue inflow declined, the company still achieved a profit due to a significant reduction in expenses and taxation.
On the expense side, the company’s other operating expenses fell to just Rs0.61m as compared to Rs1.2bn in Q2 CY23.
Furthermore, PKGS reported a significant gain on impairment of financial assets, clocking in at Rs99.42m versus the loss of Rs6m in Q2 CY23.
Meanwhile, the company’s administrative expenses increased by 56.21% year-over-year to Rs323.28m.
The company’s finance cost inflated by 13.6% and stood at Rs423.08m as compared to Rs372.41m in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a lower income tax worth Rs50.57m against the Rs130.75m paid in the corresponding period of last year, depicting a decrease of 61.3%.
In addition to this, PKGS incurred a final tax expense of Rs13.63m in Q2 CY24.
| Unconsolidated (un-audited) Financial Results for the quarter ended June 30, 2024 (Rupees in ‘000) | |||
|---|---|---|---|
| Jun 24 | Jun 23 | % Change | |
| Operating revenue | 690,153 | 1,768,190 | -60.97% |
| Gross Profit/ (loss) | 690,153 | 1,768,190 | -60.97% |
| Administrative Expenses | (323,280) | (206,957) | 56.21% |
| Net impairment gain/(losses) on financial assets | 99,418 | (5,989) | -% |
| Other Income | 51,251 | 85,728 | -40.22% |
| Other Operating Expenses | (605) | (1,199,974) | -99.95% |
| Finance Cost | (423,076) | (372,408) | 13.61% |
| Final taxes | (13,626) | (52,036) | -73.81% |
| Profit/ (loss) before taxation | 80,235 | 16,554 | 384.69% |
| Taxation | (50,570) | (130,745) | -61.32% |
| Net profit/ (loss) for the period | 29,665 | (114,191) | – |
| Basic earnings/ (loss) per share | (0.38) | (1.99) | – |
Amount in thousand except for EPS
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