POWER incurs loss of Rs469.8m in 6MFY24

MG News | February 27, 2024 at 03:47 PM GMT+05:00

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February 27, 2024 (MLN): The bottom line of Power Cement Limited (PSX: POWER) turned red in 6MFY24 as the company incurred a loss of Rs469.8 million [LPS: Rs0.64], compared to the profits of Rs420.3m [EPS: Rs0.23] in the same period last year.

Going by the results, the company's top line soared by 33.25% YoY to Rs16.84bn as compared to Rs12.64bn in 6MFY24.

The cost of sales also went up by 30.33% YoY but was less than proportionate to sales increase, which improved the gross profit by 43.76YoY to Rs3.95bn during the review period.

On the expense side, the company observed a rise in distribution expenses 2.5x YoY and administrative expenses by 26% YoY to clock in at Rs1.49bn and Rs218.68m respectively.

POWER's fixed income section observed a notable rise to clock in at Rs11.73m in 6MFY24 compared to Rs4.9m in the same period last year.

The company’s finance costs rose by 42% YoY and stood at Rs2.53bn as compared to Rs1.79bn in 6MFY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs132.65m against the Rs613.12m paid in the corresponding period of last year, depicting a decline of 78.326% YoY.

Profit and Loss Account for the half year ended December 31, 2023 ('000 Rupees)
	Dec-23	Dec-22	% Change
Sales - net	16,847,334	12,642,946	33.25%
Cost of sales	(12,891,645)	(9,891,409)	30.33%
Gross (loss) / profit	3,955,689	2,751,537	43.76%
Selling and distribution expenses	(1,493,975)	(605,093)	146.90%
Administrative expenses	(218,687)	(173,796)	25.83%
Other operating expenses	(309,701)	(374,713)	-17.35%
Operating Profit/loss	1,933,326	1,597,935	20.99
Finance Income	11,737	4,901	139.48%
Finance cost	(2,547,530)	(1,795,666)	41.87%
Finance costs - net	(2,535,793)	(1,790,765)	41.60%
Loss before taxation	(602,467)	(192,830)	212.43%
Taxation	132,650	613,124	-78.36%
Loss/Profit after taxation	(469,817)	420,294	-
Loss Earning per share - basic and diluted (Rupees)	-0.64	0.23	-