RPL: Profit amplifies 43% YoY in FY21

September 23, 2021 (MLN): Roshan Packages Limited (PSX: RPL) has posted net profits of Rs288mn for FY21, which was 43% higher compared to the profits of Rs200.9mn earned in FY20.

In line with the profits, the earnings per share of the company jumped by 37% YoY from Rs1.55/sh to Rs2.13/sh.

During the period company’s sales revenue rose from Rs5.2bn to Rs6.9bn, depicting a growth of 34% YoY as continuous improvement in technology, production techniques, business processes and customer satisfaction helped RPL to capture additional market share.

Although the cost of sales grew by 30% YoY, the higher revenues translated into higher gross profitability which rose by 61% YoY to Rs883mn. Therefore, the gross margins of the company swelled to 13% from 10% in FY20.

Moreover, despite the increase in RPL’s admin, selling and other expenses by 29%, 19% and 143% YoY, the operating profit of the company surged by 91% YoY to Rs445.4mn.

The financial charges were reduced by 50% YoY to Rs111.6mn, due to the decrease in the policy rate by the SBP and efficient fund management by the Company, which had a favourable impact on its bottom line. The net margins of the company remained stable at 4%.

On the taxation front, the company booked an effective tax at 30% for FY21, compared to tax income of Rs72.9mn in the previous FY20.

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