TGL announces Rs6 DPS despite 39% YoY drop in profit for FY23

September 26, 2023 (MLN): Tariq Glass Industries Limited (PSX: TGL) has reported a profit of Rs2.52 billion [EPS: 12.63] for the fiscal year 2023, compared to a profit of Rs4.14bn [EPS: 24.05] reported in the Same Period Last Year (SPLY), reflecting a significant decline of 39.16% YoY.

Along with the financial results for FY23, the Board of Directors (BoD) has recommended a final Cash Dividend for the year ended June 30, 2023, at Rs6 per share i.e. 60%.

Going by the results, the company's top line fell by 3.36% YoY to Rs28.43bn as compared to Rs29.42bn in SPLY.

The cost of sales increased by 4.74% YoY to Rs22.69bn in FY23, compared to the figure of Rs 21.67bn reported in FY22.

Declining sales along with an increase in the cost of sales worsened the gross profit by 26% YoY to Rs5.73bn in FY23.

On the expense side, the company observed an increase in Selling and distribution expenses by 8% YoY and other expenses by 32.01% YoY to clock in at Rs443.48m and Rs319.1m respectively during the review period.

Similarly, the administrative expenses and the exchange loss incurred during FY23 rose to Rs457.83m and Rs14.76m reflecting an increase of 26.22% YoY and 3.46x YoY respectively.

During the review period, other income rose by 13.49% YoY to stand at Rs127.51m in FY23 compared to Rs112.35m in SPLY.

The company’s finance costs increased by 46.85% YoY and stood at Rs508.15m compared to Rs346.02m in FY22, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs1.59bn against the Rs2.13bn born in the corresponding period of last year, depicting a fall of 24.84% YoY.

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