THCCL declares dividends as profit spikes over fourfold

August 21, 2024 (MLN): Thatta Cement Company Limited (PSX: THCCL) recorded an increase of 312.9% YoY in its profitability, clocking in its profit after tax at Rs1.28 billion [EPS: Rs13.97] for FY24, compared to a profit of Rs309.67m [EPS: Rs3.11] in the same period last year (SPLY).

Considering the improved financial performance, the company's directors have announced a final cash dividend of Rs1 per ordinary share.

Going by the results, the company's top line expanded by 39% YoY to Rs7.68bn as compared to Rs5.53bn in SPLY.

The cost of sales also rose by 9.6% YoY but as the change remained lesser than proportionate to sales rise, the gross profit surged by 256.7% YoY to Rs2.35bn in FY24.

Accordingly, the gross margins improved to 30.6% as compared to 11.9% in SPLY.

On the expense side, the company's administrative expenses rose 1.3% YoY to Rs152.65m, selling and distribution expenses fell 38.1% YoY to Rs54.81m, and other operating expenses rose 38.1% YoY to Rs183.5m.

THCCL experienced a significant boost in other income, which rose to Rs555.43m in FY24 from Rs266.36m in the same period last year, reflecting a notable increase of 108.5%.

The company’s finance cost rose by 10.7% and stood at Rs240.8m as compared to Rs217.45m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs995.73m against the Rs128.21m paid in the corresponding period of last year, depicting an increase of 676.7%.

The substantial increase in income enabled the company to offset rising expenses and other costs, leading to higher profits and a stronger overall performance for the year.

Amount in thousand except for EPS

Copyright Mettis Link News