Equity

THALL’s net income withers by 10.3% YoY

April 23, 2020

THALL enjoys whopping 83% growth in net profits

April 23, 2020 (MLN): Thal Limited (THALL) has reported a 10.3%YoY decline in net profits for the nine months ended on March 31, 2020 to Rs2.88 billion compared to Rs3.2 billion in the same period of last year.

The earnings per share of the company reduced from Rs 35.79 per share to Rs 32.69 per share.

During the period, revenues went down by 18.97% due to negative volume variance at the back of declining market conditions. At the same time, the devaluation of PKR against major foreign currencies also put a constant pressure on profitability for the Company.

Moreover, a significant rise in financial charges by 712.89% further injured company’s net income.

However, the company witnessed a 48.7% rise in profits from associates and a decline of around 30% in tax payments which provided a cushion to company’s profitability.

Financial Results for the Nine months ended March 31, 2020 ('000 Rupees)
	Mar-20	Mar-19	% change
Revenue – net	14,075,996	17,372,159	-18.97%
Cost of sales	(12,044,970)	(13,894,792)	-13.31%
Gross profit	2,031,026	3,477,367	-41.59%
Distribution costs	(278,692)	(225,963)	23.34%
Administrative expenses	(1,155,481)	(1,133,764)	1.92%
Other charges	(149,098)	(231,491)	-35.59%
Total expenses	(1,583,271)	(1,591,218)	-0.50%
Other income	2,376,576	1,897,108	25.27%
Operating profit	2,824,331	3,783,257	-25.35%
Finance costs	(128,656)	(15,827)	712.89%
	2,695,675	3,767,430	-28.45%
Share of net profit of associates – after tax	1,088,292	731,697	48.74%
Profit before taxation	3,783,967	4,499,127	-15.90%
Taxation	(901,318)	(1,285,886)	-29.91%
Profit after taxation	2,882,649	3,213,241	-10.29%
Basic and diluted earnings per share (Rupees)	32.69	35.79	-8.66%