September 27, 2023 (MLN): Towellers Limited (PSX: TOWL) soared to new heights of success in FY23, posting a whopping 2.25x YoY increase in its net profit.
The textile company raked in Rs2.39 billion in profit after tax, translating to an impressive EPS of Rs140.49. This is a remarkable turnaround from the previous year when the company earned Rs1.06bn in net profit with an EPS of Rs62.53.
Along with the results, the company announced a final cash dividend of Rs10 per share i.e. 100% for the year ended June 30, 2023.
This is in addition to the interim cash dividend already paid at Rs3 per share i.e., 30%.
Additionally, the Board of Directors of TOWL in their meeting discussed that, over the years the company has continued with its expansion strategy and has made significant investments that have enhanced enterprise value for the shareholders.
The Board noted that because of these reasons, the unappropriated profits of the company have been utilized and are not entirely available for distribution as dividends.
Therefore, the board decided to reclassify a sum of Rs4bn from the Revenue Reserves to separate Capital Reserves (un-distributable by way of dividend) to more accurately reflect the nature of these reserves.
Going by the financial results made available to the PSX, the company's top line inflated by 8.29% YoY to Rs11.09bn as compared to Rs10.24bn in SPLY.
The company was able to reduce its cost of sales by 2.54% YoY, which improved the gross profit by 50.58% YoY to Rs3.14bn in FY23.
Moreover, during the review period, other income rose witnessed a substantial increase of 7.97x YoY to stand at Rs338.88 million in FY23 as compared to Rs42.53m in FY22.
On the expense side, the company observed a fall in Distribution cost by 41.76% YoY while other expenses rose by 2.44x YoY to clock in at Rs298.7m and Rs183.56m respectively during the review period.
The company’s finance costs surged by 2.32x YoY and stood at Rs53.85m as compared to Rs23.25m in FY22, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs191.78m against the Rs121.95m paid in the corresponding period of last year, depicting a rise of 57.27% YoY.
| Unconsolidated (un-audited) Financial Results for year ended 30 June, 2023 (Rupees in '000) | |||
|---|---|---|---|
| June 23 | June 22 | % Change | |
| Sales | 11,086,916 | 10,238,086 | 8.29% |
| Cost of sales | (7,944,316) | (8,151,154) | -2.54% |
| Gross Profit | 3,142,600 | 2,086,932 | 50.58% |
| Distribution cost | (298,705) | (512,916) | -41.76% |
| Administrative expenses | (365,248) | (333,125) | 9.64% |
| Other Income | 338,877 | 42,526 | 696.87% |
| Other expenses | (183,558) | (75,174) | 144.18% |
| Finance cost | (53,848) | (23,250) | 131.61% |
| Profit before taxation | 2,580,119 | 1,184,994 | 117.73% |
| Taxation | (191,781) | (121,946) | 57.27% |
| Net profit for the period | 2,388,338 | 1,063,048 | 124.67% |
| Basic earnings/ (loss) per share | 140.49 | 62.53 | – |
Amount in thousand except for EPS
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Posted on: 2023-09-27T13:07:10+05:00
