SEPL declares Rs10 DPS after 54% rise in FY24 profit

MG News | July 30, 2024 at 03:00 PM GMT+05:00

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July 30, 2024 (MLN): Security Paper Limited (PSX: SEPL) has announced Final Cash Dividend at the rate of Rs10 per share for the year ended June 30, 2024, as the profit rose to Rs1.49 billion [EPS: Rs25.12], around 54% higher compared to earnings in FY23.

This is in addition to the interim cash dividend already paid at the rate of Rs2.50 per share, making a total of Rs 12.50 per share i.e. 125% (2023: Cash Dividend at the rate of Rs 11.00 per share i.e. 110%).

Going by the results, the company's top line rose 26.2% YoY to Rs7.31bn as compared to Rs5.79bn in SPLY.

The cost of sales rose by 23.1% YoY but was lesser than proportionate to sales rise, which improved the gross profit by 34.8% YoY to Rs2.05bn in FY24.

Accordingly, the gross margins improved to 28.0% as compared to 26.2% in SPLY.

On the expense side, the company's administrative expenses rose 19.9% YoY to Rs472.27m, while other operating expenses fell YoY to Rs189.68m.

SEPL's profit received a further boost from the 'Other Income' section, which increased by 49.3% YoY to Rs1.01bn in FY24, compared to Rs678.39 million in FY23.

The company’s finance cost shrunk 12.2% YoY and stood at Rs6.09m as compared to Rs6.93m in SPLY.

On the tax front, the company paid a higher tax worth Rs903.47m against the Rs576.31m paid in the corresponding period of last year, depicting a rise of 56.8% YoY.

It is worth noting that the company has transferred of Rs788.77m (2023: Rs 295.144m) from un-appropriated profit to revenue reserves.

The financial statements for the year ended June 30, 2024 do not include the effect of these appropriations, which will be accounted for subsequent to the year-end.

Financial Results for the year ended June 30, 2024 (Rupees in '000)
	Jun 24	Jun 23	% Change
Sales	7,311,732	5,794,593	26.18%
Cost of sales	(5,264,443)	(4,276,304)	23.11%
Gross Profit/ (loss)	2,047,289	1,518,289	34.84%
Administrative Expenses	(472,266)	(394,019)	19.86%
Other Income	1,012,900	678,391	49.31%
Other Operating Expenses	(189,677)	(252,042)	-24.74%
Finance Cost	(6,088)	(6,933)	-12.19%
Profit/ (loss) before taxation	2,392,158	1,543,686	54.96%
Taxation	(903,474)	(576,306)	56.77%
Net profit/ (loss) for the period	1,488,684	967,380	53.89%
Basic earnings/ (loss) per share	25.12	16.33	-