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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