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Towellers Limited records steep 46.95% YoY profit decline in 1HFY24

Towellers Limited records steep 46.95% YoY profit decline in 1HFY24
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February 26, 2024 (MLN): Towellers Limited (PSX: TOWL) experienced a drop of 46.95% YoY in its earnings for 1HFY24, clocking in its profit after tax at Rs604.78 million [EPS: Rs35.58], compared to a profit of Rs1.14 billion [EPS: Rs67.07] in the same period last year (SPLY).

Going by the results, the company's top line surged by 17.67% YoY to Rs6.66bn as compared to Rs5.66bn in SPLY.

However, the cost of sales rose by a greater proportion to sales, which reduced the gross profit by 39.71% YoY to Rs917.39m in 1HFY24.

It is important to highlight that the gross margins of the company have worsened to 13.77% as compared to 26.88% in 1HFY23.

On the expense side, the company observed a rise in Distribution expenses by 0.88% YoY and other expenses by 35.07% YoY to clock in at Rs168.12m and Rs45.55m respectively during the review period.

Likewise, TOWL's administrative expenses registered a rise of 22.71% to stand at Rs183.77m in 1HFY24.

Although the company's other income surged 73.54% YoY toRs239.13m in 1HFY24, the growth failed to uplift the profit.

The company’s finance cost dropped 75.2% YoY and stood at Rs8.61m as compared to Rs34.7m in SPLY, despite higher interest rates.

On the tax front, the company paid a higher tax worth Rs145.7m against the Rs98.16m paid in the corresponding period of last year, depicting a rise of 48.43% YoY.

Condensed interim Financial Results for half year ended 31 December, 2023 (Rupees in '000)
  Dec 23 Dec 22 % Change
Sales 6,661,889 5,661,287 17.67%
Cost of sales (5,744,501) (4,139,546) 38.77%
Gross Profit 917,388 1,521,742 -39.71%
Distribution expenses (168,116) (166,646) 0.88%
Administrative expenses (183,769) (149,763) 22.71%
Other Income 239,134 137,798 73.54%
Other expenses (45,546) (70,145) -35.07%
Finance cost (8,607) (34,704) -75.20%
Profit before taxation 750,484 1,238,282 -39.39%
Taxation (145,702) (98,160) 48.43%
Net profit for the period 604,783 1,140,122 -46.95%
Basic earnings/ (loss) per share 35.58 67.07

Amount in thousand except for EPS

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Posted on: 2024-02-26T13:03:47+05:00