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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