Systems Limited’s profits jump by 71% despite significant rise in finance and tax expense

April 29, 2020 (MLN): Systems Limited has earned profits of Rs. 526.8 million (EPS: Rs. 4.31) during the quarter ended March 31, 2020, almost 71% higher as opposed to the earnings of the same period last year.

The growth in earnings was achieved on the back of the rise in topline income by 39% and non-core income by 4.86x. A fall in non-core expenses by 48% also contributed to the overall earnings of the company.

However, the major expense heads such as Distribution and Administrative cost increased by 78% and 48% respectively. On top of that, the finance cost depicted a growth of 104% due to excessing borrowing and higher interest rates, while income tax expense jumped by 73%.

Profit and Loss account for quarter ended March 30, 2020 (Rupees)

 

Mar-20

Mar-19

% Change

Revenue – net

2,231,850,608

1,601,241,891

39.38%

Cost of sales

1,582,179,058

1,114,426,910

41.97%

Gross profit

649,671,550

486,814,981

33.45%

Distribution cost

80,473,818

45,066,369

78.57%

Administrative expenses

218,590,645

147,312,745

48.39%

Other operating expenses

5,138,241

9,866,951

-47.92%

Other income

202,657,287

34,552,454

486.52%

Operating profit

548,126,134

319,121,370

71.76%

Finance cost

11,197,153

5,475,889

104.48%

Profit before taxation

536,928,981

313,645,481

71.19%

Taxation

10,120,705

5,848,074

73.06%

Profit after taxation

526,808,276

307,797,407

71.15%

Earnings per share – basic

4.31

2.78

55.04%

 

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Posted on: 2020-04-29T11:24:00+05:00

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