October 5, 2021 (MLN): SEARL has announced its FY21 results where it posted a profit after tax of Rs3.7bn as compared to a profit after tax of Rs2.5bn in the same period last year, up by 47% YoY.
In line with profits, the earnings per share of the company went up by 37.8% YoY from Rs11.46/sh to Rs15.8/sh in FY20.
Alongside financial results, the company announced a strong cash dividend of Rs2 and a 30% bonus issuance.
The uptick in profitability is mainly attributable to a one-off increase in other income and a lower effective tax rate of 26% against 30% in the SPLY.
On the revenues front, SEARL has reported revenues of Rs26.2bn, up by 28% YoY. The spike follows the amalgamation of OBS Pakistan (under SPV of Luna Pakistan) and a low base last year, a report by Intermarket Securities said.
In addition, on account of higher input costs, the gross margin of the company has been squeezed to 46% compared to 47% in the previous fiscal year.
With regards to the major expense head, the company’s Selling & distribution costs rose by 21% YoY, primarily due to the addition of new businesses while its Admin expenses surged by 16.3% YoY.
On the downside, despite the lower interest rate environment, the finance cost of the company mounted sharply by 2.1x YoY to Rs1.45bn, due to debt that was undertaken to fund the OBS acquisition.
Moreover, the company has booked a large other income of Rs1.35bn, which according to the report is on account of gain on sale of certain property/business (perhaps IBL Identity).
|
Consolidated Statement of Profit or Loss for the year ended June 30 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
Revenue |
26,219,656 |
20,474,842 |
28.06% |
|
Cost of sales |
(14,028,488) |
(10,769,089) |
30.27% |
|
Gross profit |
12,191,168 |
9,705,753 |
25.61% |
|
Distribution costs |
(5,348,136) |
(4,417,290) |
21.07% |
|
Administrative expenses |
(1,382,871) |
(1,188,766) |
16.33% |
|
Other operating expenses |
(326,467) |
(261,841) |
24.68% |
|
Other income |
1,353,192 |
505,957 |
167.45% |
|
Profit from operations |
6,486,886 |
4,343,813 |
49.34% |
|
Finance cost |
(1,451,588) |
(684,953) |
111.93% |
|
Profit before income tax |
5,035,298 |
3,658,860 |
37.62% |
|
Income tax expense |
(1,288,450) |
(1,110,813) |
15.99% |
|
Profit for the period |
3,746,848 |
2,548,047 |
47.05% |
|
Basic and diluted earnings per share (Rupees) |
15.80 |
11.46 |
37.87% |
Copyright Mettis Link News
27249
