Tariq Glass sees about 17% decline in 1HFY25 profit

February 21, 2025 (MLN): Tariq Glass Industries Limited (PSX: TGL)witnessed a 16.63% decline in net profit for the first half of the fiscal year 2025, posting Rs2.27 billion in profit after tax [EPS: Rs13.16], compared to Rs2.72bn [EPS: Rs15.79] in the same period last year (SPLY)

The Board of Directors of the Company has declared an interim cash dividend of 20% (i.e., Rs2 per share) for the financial year ending June 30, 2025.

Despite this, the company’s revenue grew by 13.84% YoY to Rs16.44bn, up from Rs14.44bn in SPLY.

However, the cost of revenue increased by 7.60% YoY, reaching Rs11.40bn, which impacted overall profitability.

As a result, the gross profit rose by 31.03% YoY to Rs5.04bn, while the gross margin improved from 26.64% in SPLY.

On the expense side, administrative expenses surged by 20.33% YoY, while selling and distribution expenses saw a slight 0.67% decline.

The operating profit increased by 34.27% YoY to Rs4.49bn, primarily due to higher revenues.

However, other income plummeted by 43.32% YoY to Rs85.06mn, and finance costs surged by 28.86% YoY to Rs300.81mn, reflecting a challenging macroeconomic environment.

Additionally, the company's share of loss from associates saw a substantial increase to Rs193.04mn, while other expenses also climbed 31.96% YoY.

Consequently, profit before tax dropped by 3.75% YoY to Rs3.77bn, with taxation rising 25.40% YoY to Rs1.51bn, further squeezing net earnings.

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