September 25, 2020 (MLN): Sapphire Textile Mills Limited (SAPT) witnessed 56% YoY increase in net profits for FY20 to Rs 7.86 billion compared to the profits of Rs 5 billion reported in FY19.
The earnings per share of the company also exhibited an increase of 38% YoY to Rs 245.36 as apposed to Rs 178.24 last year.
During the year, Company’s net turnover increased from Rs.49.6 billion to Rs.52.96 billion, depicting a growth of 7% YoY, while its cost of goods sold exhibited a marginal growth, accordingly, the gross profit margin of the company surged to 32% from 28% last year.
The increased profitability can be attributed to rationalization of energy prices for the export-oriented industry, currency adjustment, and Company’s continued emphasis on vertical integration and growth in sale of value-added products.
The increase in interest rates during FY20 remained a challenge for SAPT due to high cost of borrowing for working capital. The finance of the company increased to Rs.6 billion representing 11% of sales from Rs.4.97 billion representing 10% of sales in FY19.
Consolidated Profit and Loss Account for the Year ended June 30, 2020 (Rupees) | |||
|---|---|---|---|
| Jun-20 | Jun-19 | % Change |
Net turnover | 52,967,395,731 | 49,641,617,037 | 7% |
Cost of Sales | (36,161,494,725) | (35,792,532,087) | 1% |
Gross Profit | 16,805,901,006 | 13,849,084,950 | 21% |
Distribution Cost | (2,595,681,324) | (2,857,822,555) | -9% |
Administrative Cost | (784,446,472) | (795,739,879) | -1% |
Other Operating Expenses | (217,390,973) | (515,724,842) | -58% |
Other Income | 702,357,546 | 585,048,426 | 20% |
| (2,895,161,223) | (3,584,238,850) | -19% |
Profit from Operations | 13,910,739,783 | 10,264,846,100 | 36% |
Finance Cost | (6,054,361,338) | (4,970,115,365) | 22% |
Share of profit of associated companies | 129,882,216 | 175,894,211 | -26% |
Profit before Taxation | 7,986,260,661 | 5,470,624,946 | 46% |
Taxation | (121,981,481) | (431,316,256) | -72% |
Profit after Taxation | 7,864,279,180 | 5,039,308,690 | 56% |
Earnings per share- basic and diluted | 245.36 | 178.24 | 38% |
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