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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