Supernet Limited reports lower earnings despite higher sales in FY23

October 05, 2023 (MLN): Supernet Limited (PSX: GEMSPNL) experienced a notable decline in profitability, with a year-over-year decrease of 34.57%.

For the fiscal year 2023, the company reported a profit after tax amounting to Rs188.32 million, resulting in earnings per share (EPS) of Rs1.5.

This represents a significant contrast to the preceding fiscal year, FY22, during which Supernet Limited reported a profit of Rs287.82m, equivalent to an EPS of Rs2.33.

Going by the results, the company's top line increased by 24.19% YoY to Rs3.92bn as compared to Rs3.16bn in SPLY.

The cost of sales also rose by 32.72% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 7.15% YoY to Rs1.13bn in FY23.

During the review period, other income expanded by 44.31% YoY to stand at Rs24.68m in FY23 as compared to Rs17.1m in SPLY.

On the expense side, the company observed a rise in Administrative expenses by 29.61% YoY to clock in at Rs513.14m.

The company’s finance costs soared by 60.16% YoY and stood at Rs43.57m as compared to Rs27.21m in FY22, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs93.06m against the Rs100.23m paid in the corresponding period of last year, depicting a fall of 7.15% YoY.

Amount in thousand except for EPS

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