Towellers Limited profits tumble 86% YoY in 1Q2024

April 26, 2024 (MLN): Towellers Limited's (PSX: TOWL) profits plunged 85.7% YoY in the three months ended March 2024, with its profit after tax falling to just Rs59.17 million [EPS: Rs3.48], compared to a profit of Rs412.36m [EPS: Rs24.26] in the same period last year (SPLY).

THe decline was attributed to significant decline in gross margins during the quarter.

Going by the results, the company's revenue went up by 35.3% YoY to Rs2.55bn as compared to Rs1.88bn in SPLY.

However, the cost of sales surged by 80.3% YoY, worsening the gross profit by 59.9% YoY to Rs242.74m in 1Q2024.

The gross margins worsened to 9.52% as compared to 32.10% in SPLY.

During the review period, other income rose 45.3% YoY to stand at Rs125.33m in 1Q2024 as compared to Rs86.24m in SPLY.

On the expense side, the company observed a rise in administrative expenses by 41.0% YoY while other expenses fell by 65.9% YoY to clock in at Rs139.83m and Rs8.81m respectively during the review period.

The company’s finance cost shrank 87.6% YoY and stood at Rs4.29m as compared to Rs34.62m in SPLY.

On the tax front, the company paid a higher tax worth Rs68.4m against the Rs46.16m paid in the corresponding period of last year, depicting a rise of 48.2% YoY.

Amount in thousand except for EPS

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