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.
| Consolidated (un-audited) Financial Results for the year ended June 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Jun 24 | Jun 23 | % Change | |
| Net-Sales | 7,683,766 | 5,527,127 | 39.02% |
| Cost of sales | (5,333,104) | (4,868,158) | 9.55% |
| Gross Profit/ (loss) | 2,350,662 | 658,969 | 256.72% |
| Administrative Expenses | (152,645) | (150,650) | 1.32% |
| Selling And Distribution Expenses | (54,805) | (88,498) | -38.07% |
| Other Income | 555,426 | 266,363 | 108.52% |
| Other Operating Expenses | (183,495) | (30,865) | 494.51% |
| Finance Cost | (240,798) | (217,447) | 10.74% |
| Profit/ (loss) before taxation | 2,274,345 | 437,872 | 419.41% |
| Taxation | (995,729) | (128,206) | 676.66% |
| Net profit/ (loss) for the period | 1,278,616 | 309,666 | 312.90% |
| Basic earnings/ (loss) per share | 13.97 | 3.11 | – |
Amount in thousand except for EPS
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Posted on: 2024-08-21T10:16:13+05:00
