THALL: Lower sales hurt margins

February 20, 2020 (MLN): Thal Limited (THALL) has declared its financial results for half-year ended December 31, 2019, wherein the company has recorded net profits of Rs 1.68 billion (EPS: 18.84)i.e. down by 14.6% YoY against Rs 1.97 billion of the same period last year.

The company’s gross profits plunged by 46% YoY due to a decline in sales revenue despite a 21% decrease in the cost of sales, shrinking gross margins from 19% to 14%.

On the expense front, the distribution cost of the company reached to Rs 152 million, up by 11% YoY owing to augmented distribution activities. The company bore administrative cost which hiked to Rs 789 million i.e., 3.35% YoY higher than the same period of last year.

In addition, other income jumped by 25.6% YoY to Rs 1.58 billion. The substantial growth was recorded in the finance cost of the company which surged by 11 times YoY to Rs 84 million.

More notably, the share of net profits from associated companies increased by 30% YoY to Rs 651 million whereas, the tax expenses of the company plummeted by 32% YoY, providing the cushion to its earnings.

Alongside financial results, the board of directors has announced an interim cash dividend for the year ended Dec 31, 2019, at Rs 1.50 per share i.e. 30%.

Financial Results for the half-year ended December 31st 2019 ('000 Rupees)

 

Dec-19

Dec-18

% change

Revenue – net

 8,243,769

 11,118,896

-25.86%

Cost of sales

 (7,125,947)

 (9,032,754)

-21.11%

Gross profit

 1,117,822

 2,086,142

-46.42%

Distribution costs

 (152,073)

 (136,762)

11.20%

Administrative expenses

 (789,208)

 (763,655)

3.35%

Other charges

 (83,127)

 (140,233)

-40.72%

Total expenses

 (1,024,408)

 (1,040,650)

-1.56%

Other income

 1,580,708

 1,258,116

25.64%

Operating profit

 1,674,122

 2,303,608

-27.33%

Finance costs

 (84,180)

 (7,651)

1000.25%

 

 1,589,942

 2,295,957

-30.75%

Share of net profit of associates – after tax

 651,371

 501,305

29.94%

Profit before taxation

 2,241,313

 2,797,262

-19.87%

Taxation

 (558,385)

 (826,566)

-32.45%

Profit after taxation

 1,682,928

 1,970,696

-14.60%

Basic and diluted earnings per share (Rupees)

 18.84

 21.72

-13.26%

 

Copyright Mettis Link News

Posted on: 2020-02-20T15:33:00+05:00

32901