Shield Corporation reports Rs202mn profit in H1FY25, reversing Rs10mn loss

February 26, 2025 (MLN): Shield Corporation Limited (PSX: SCL) has reported a net profit of Rs202 million for the half-year ended December 31, 2024, marking a significant turnaround from a loss of Rs10mn in the same period last year.

The company’s earnings per share (EPS) stood at Rs51.8, a stark improvement from a loss per share of Rs2.6 in 2023.

Despite a challenging economic environment, SCL's financial performance reflects a strong recovery, largely driven by reduced finance costs and a reversal of expected credit losses.

The company's total sales declined by 30.4% year-over-year to Rs1.6 billion from Rs2bn.

However, cost-cutting measures, including a 43.5% reduction in finance costs, contributed to improved profitability.

Gross profit fell 43.6% to Rs371mn from Rs658.6mn, as the cost of sales declined by 25%.

Operating profit also saw a substantial decline of 82.4% to Rs33.5mn, down from Rs190.4mn in the previous year.

Selling and distribution expenses were cut by 28% to Rs318mn, while administrative expenses remained relatively stable at Rs32.6mn.

One of the most notable factors influencing the results was the significant decline in other operating expenses, which dropped 92% to Rs0.8mn from Rs10mn.

The company's tax burden also decreased by 47%, further supporting its bottom line.

SCL’s profitability before taxation saw an extraordinary increase of 775% to Rs226mn, compared to Rs26mn in 2023.

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