Security Paper's Q1 earnings spike to Rs337m

April 29, 2024 (MLN): Security Paper Limited (PSX: SEPL) experienced a massive jump in its earnings for the quarter ended March 31, 2024 (Q12024), reporting a profit after tax at Rs336.93 million [EPS: Rs5.69], compared to a profit of Rs94.84m [EPS: Rs2.13] in the same period last year (SPLY).

Going by the results, the company's top line surged by 67.1% YoY to Rs1.81bn as compared to Rs1.08bn in SPLY.

The cost of sales also increased by 31.4% YoY but the growth in sales was of a greater proportion, which improved the gross profit by 452.1% YoY to Rs506.93m in Q12024.

Accordingly, the gross margins improved to 28.00% as compared to 8.47% in SPLY.

On the expense side, the company observed a rise in Administrative Expenses by 75.2% YoY and other expenses by 42.1% YoY to clock in at Rs131.35m and Rs43.7m respectively during the review period.

The gains during the quarter were further blostered by the other income, which surged 52.7% YoY to stand at Rs244.02m in Q12024 as compared to Rs159.78m in the same period last year.

The company’s finance cost contracted by 67.7% YoY and stood at Rs1.02m as compared to Rs3.14m in SPLY, despite higher interest rates.

On the tax front, the company paid a higher tax worth Rs237.95m against the Rs3.19m paid in the corresponding period of last year.

Amount in thousand except for EPS

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