Siemens Pakistan swings to profit with Rs1.01bn in earnings

January 30, 2025 (MLN): Siemens Pakistan Engineering Co. Limited (PSX: SIEM) reported a net profit of Rs1.01 billion [EPS: Rs122] for the quarter ended December 31, 2024, marking a strong turnaround from the loss of Rs1.08bn [LPS: Rs131.8] in the same period last year.

The company's net sales witnessed a sharp decline of 39.8%, dropping to Rs1.59bn from Rs2.64bn in Q4 2023. However, a steeper reduction in the cost of sales by 57.3% helped gross profit surge by 69.4% to Rs620.11m.

On the expense side, marketing and selling expenses increased by 25.3% YoY to Rs219.23m, while general administrative expenses more than doubled, rising 131% to Rs17.63m. A notable reversal in expected credit losses contributed Rs31.42m in income.

Operating profit surged 173% to Rs395.31m, supported by a 100.2% rise in financial income to Rs15.09m, offset slightly by a 13.1% decrease in financial expenses to Rs4.03m.

On the tax front, the company incurred an income tax expense of Rs88.07m, a sharp contrast to the tax benefit of Rs183.36m in the same quarter last year.

A key driver of profitability was the Rs688.33m gain from discontinued operations, helping Siemens Pakistan post a Rs1.01bn net profit for the quarter.

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