Sapphire Textile Mills witnesses 56% YoY jump in net profits during FY20

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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Posted on: 2020-09-25T11:06:00+05:00

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