THALL’s profitability declines by 33% due to lower revenues

October 25, 2019 (MLN): Thal Limited, has declared consolidated profits of Rs. 650.3 million for the quarter September 30th, 2019  approximately 33% lower than the parallel period last year. The company recorded its EPS at Rs. 7.04 per share for the same period.

The drop in financial earnings came largely due to a decline in net revenues by 18.6%, which led the gross margins to decline considerably from 18% to 8%.

The decline in profitability was also attributable to a surge in the company’s core expenses and finance cost. Core expenses such as distribution cost and admin cost jumped by 11.5% and 2% respectively, whereas, finance cost increased significantly by 1053%.

Despite experiencing improvement in the company’s other income and reduction in tax expenses by 28.4% and 33.6% respectively, the impact failed to lift Thal’s profitability.  

Profit and Loss Account for the quarter ended September 30, 2019 ('000 Rupees)

 

Sep-19

Sep-18

% Change

Revenue – net

 4,186,504

 5,148,188

-18.68%

Cost of sales

 (3,834,221)

 (4,220,606)

-9.15%

Gross profit

 352,283

 927,582

-62.02%

Distribution costs

 (91,979)

 (82,445)

11.56%

Administrative expenses

 (380,834)

 (372,699)

2.18%

Other charges

 (20,092)

 (52,133)

-61.46%

 

 (492,905)

 (507,277)

-2.83%

Other income

 771,422

 600,683

28.42%

Operating profit

 630,800

 1,020,988

-38.22%

Finance costs

 (39,873)

 (3,457)

1053.40%

 

 590,927

 1,017,531

 

Share of net profit of associates – after tax

 272,590

 271,922

0.25%

Profit before taxation

 863,517

 1,289,453

-33.03%

Taxation

 (213,157)

 (309,660)

-31.16%

Profit after taxation

 650,360

 979,793

-33.62%

Basic and diluted earnings per share (Rupees)

 7.04

 10.80

-34.81%

 

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Posted on: 2019-10-25T14:25:00+05:00

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