THALL Q1 profit rises 30% despite lower revenue

October 30, 2024 (MLN): Thal Limited (PSX: THALL) earned a 29.8% higher first-quarter profit despite lower revenue. The growth was led by higher other income.

The company posted a net profit of Rs328.92 million [EPS: Rs4.06] during the quarter ending September 2024, up from Rs253.33m [EPS: Rs3.13] in the same period last year (SPLY).

The company's revenue marked a decline of 1.9% to Rs5.75bn as compared to Rs5.86bn in SPLY. Gross profit fell 18.9% to Rs481.09m in Q1 FY25.

The gross margins worsened to 8.4% as compared to 10.1% in SPLY.

Meanwhile, its other income jumped 65.5% to stand at Rs795.7m in Q1 FY25 as compared to Rs480.7m in SPLY.

On the expense side, the company's administrative expenses rose 20.8% from a year ago to Rs357.84m, selling and distribution expenses rose 11.5% to Rs192.61m, and other operating expenses fell 20.1% to Rs40.25m.

The company’s finance cost down by 1.5% and stood at Rs190.13m as compared to Rs193.03m in SPLY.

On the tax front, the company paid a higher tax worth Rs167.04m against Rs108.06m paid in the corresponding period of last year, an increase of 54.6%.

This translates to an effective tax rate of 33.7% as compared to 29.9% in SPLY.

Amount in thousand except for EPS

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