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Stylers International announces Rs1 dividend despite 13% lower earnings

Stylers International announces Rs1 dividend despite 13% lower earnings
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February 27, 2024 (MLN): Stylers International Limited (PSX: STYLERS) reported its profit and loss statement for the first half of fiscal year 2024, wherein the profit after tax clocked in at Rs706.67 million [EPS: Rs1.62] compared to a profit of Rs816.51m [EPS: Rs1.9] in the same period last year (SPLY).

Along with the results, the company announced an interim cash dividend of Rs1 per share.

Going by the results, the company's top line deflated by 20.99% YoY to Rs6.05bn as compared to Rs7.66bn in SPLY.

The cost of sales also fell by 25.37% YoY but was not enough to offset the sales decline, which worsened the gross profit by 2.00% YoY to Rs1.41bn in 1HFY24.

However, the gross margins improved to 23.25% as compared to 18.75% in SPLY.

During the period under review, other income deflated by 42.15% YoY to stand at Rs152.93m in 1HFY24 as compared to Rs264.38m in SPLY.

On the expense side, the company observed a rise in administrative expenses by 42.98% YoY and other expenses by 10.51% YoY to clock in at Rs228.97m and Rs154.8m respectively during the review period.

The company’s bank and other charges increased by 22.92% YoY and stood at Rs114.73m as compared to Rs93.34m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs114.76m against the Rs100.67m paid in the corresponding period of last year, depicting an increase of 14.00% YoY.

To note, Stylers International Limited debuted on the Pakistan Stock Exchange Limited (PSX) on January 22, 2024.

The company was listed on the Exchange under the Scheme of Arrangement for merger/amalgamation of AEL Textiles Limited (AEL).

Company Information

Stylers International Limited is principally engaged in carrying out manufacturing, marketing, and export of ready-made garments.

Stylers International is a manufacturer and exporter of woven denim garments.

The company is part of US Group, one of the biggest vertically designed Denim Fabric and Apparel manufacturers in Pakistan.

The group is employing almost 23,000 employees and a total turnover of more than 5.45 billion per year, Stylers employees are around 5,000 and its turnover is around $50 million per year.

The company is currently supplying garments to some of the best fashion houses of the world.

Unconsolidated (un-audited) Financial Results for half year ended December 31, 2023 (Rupees in '000)
  Dec 23 Dec 22 % Change
Sales 6,048,502 7,655,665 -20.99%
Cost of sales (4,642,062) (6,220,490) -25.37%
Gross Profit 1,406,440 1,435,176 -2.00%
Administrative Expenses (228,974) (160,141) 42.98%
Distribution Cost (239,434) (388,813) -38.42%
Other Income 152,932 264,380 -42.15%
Other Expenses (154,803) (140,085) 10.51%
Bank and other charges (114,725) (93,337) 22.92%
Profit before taxation 821,436 917,181 -10.44%
Taxation (114,764) (100,669) 14.00%
Net profit for the period 706,671 816,512 -13.45%
Basic earnings/ (loss) per share 1.62 1.90

Amount in thousand except for EPS

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Posted on: 2024-02-27T10:42:14+05:00