THALL reports Rs4bn profit for 1HFY25, down 20% YoY, declares dividend

February 27, 2025 (MLN): Thal Limited (PSX: THALL) has reported a consolidated profit after taxation of Rs4 billion for the half-year ended December 31, 2024, reflecting a 20% decline compared to Rs5.4bn recorded in the corresponding period of the previous year.

Despite the drop in profitability, the board of directors has announced an interim cash dividend of Rs4 per share, equivalent to an 80% payout.

The basic and diluted earnings per share (EPS) for the period declined to Rs47.27 from Rs61.73.

The company’s revenue surged by 25.5% year-over-year, reaching Rs15bn, up from Rs12bn in 2023.

The growth in revenue was accompanied by an increase in the cost of sales, which rose 24.6% to Rs13.5bn, resulting in a gross profit of Rs1bn, a 35% improvement from the previous year.

Operating profit also demonstrated strong growth, climbing 29% to Rs3bn, driven by a 22.4% increase in other income, which totaled Rs3bn.

However, higher administrative and selling expenses, amounting to Rs1.4bn, weighed on the company’s bottom line.

A key factor in the profit decline was the 29.5% drop in the share of net profit from associates, which fell to Rs3.6bn from Rs5bn in the previous year.

Additionally, taxation expenses surged 25% to Rs1.7bn, further impacting overall profitability.

Finance costs, however, provided some relief, decreasing by 8.6% to Rs487 million, while the levy imposed on the company fell 15.6% to Rs259.5mn.

As a result, profit before taxation stood at Rs6bn, down 10.7% from Rs6.7bn in 2023.

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