Service Industries's Q2 profit soars by 190% to Rs2.04bn

August 26, 2024 (MLN): Service Industries Limited (PSX: SRVI) reported a profit of Rs2.04 billion [EPS: Rs30.09] for the quarter ended June 30, 2024, a remarkable increase of over 190% compared to Rs700.21 million [EPS: Rs11.88] in Q2 2023.

Going by the results, the company's top line went up by 31.1% to Rs31.6bn as compared to Rs24.11bn in SPLY.

The cost of sales also rose by 24.3%, but the greater increase in sales led to a 54.6% improvement in gross profit, which reached Rs8.29bn in Q2 2024.

Accordingly, the gross margins improved to 26.2% as compared to 22.3% in SPLY.

On the expense side, the company saw a 29% YoY increase in administrative expenses, reaching Rs882.3m. Selling and distribution expenses rose by 28% YoY to Rs2.14bn, while other operating expenses surged by 81.8% YoY to Rs232.33 million.

During the period under review, other income contributed to the increase in profit, growing by 40.8% to Rs296.72m in Q2 2024, compared to Rs210.7m in the same period last year.

The company’s finance cost decreased by 2.4% and stood at Rs1.82bn as compared to Rs1.87bn in SPLY.

On the tax front, the company paid a higher tax worth Rs1.51bn against the Rs402.81m paid in the corresponding period of last year, depicting an increase of 274.6%.

Amount in thousand except for EPS

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