Towellers Limited reports a sharp drop in earnings in 1QFY24

MG News | October 27, 2023 at 12:36 PM GMT+05:00

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October 27, 2023 (MLN): Towellers Limited (PSX: TOWL) recorded a decline of 32.91% YoY in its profitability, clocking in its profit after tax at Rs503.99 million [EPS: Rs29.65] in 1QFY24, compared to a profit of Rs751.27m [EPS: Rs44.19] in the same period last year (SPLY).

Going by the results, the company's top line rose by 26.67% YoY to Rs3.9bn as compared to Rs3.08bn in SPLY.

However, the cost of sales also rose by 50.58% YoY, which worsened the gross profit by 26.59% YoY to Rs700.22m in 1QFY24.

Meanwhile, during the review period, other income increased by 2.01x YoY to stand at Rs98.66m in 1QFY24 as compared to Rs47.36m in SPLY.

On the expense side, the company observed an increase in distribution cost by 22.08% YoY while reducing other expenses by 24.05% YoY to clock in at Rs85.59m and Rs34.13m respectively during the review period.

The company’s finance costs slid by 52.36% YoY and stood at Rs4.53m as compared to Rs9.52m in 1QFY23.

On the tax front, the company paid a lower tax worth Rs76.01m against the Rs49.4m paid in the corresponding period of last year, depicting a decrease of 53.88% YoY.

Unconsolidated (un-audited) Financial Results for Quarter ended 30 September, 2023 (Rupees in '000)
	Sep 23	Sep 22	% Change
Sales	3,899,691	3,078,616	26.67%
Cost of sales	(3,199,474)	(2,124,729)	50.58%
Gross Profit	700,218	953,887	-26.59%
Distribution cost	(85,586)	(70,107)	22.08%
Administrative expenses	(94,627)	(76,018)	24.48%
Other Income	98,662	47,361	108.32%
Other expenses	(34,128)	(44,936)	-24.05%
Finance cost	(4,533)	(9,515)	-52.36%
Profit before taxation	580,006	800,671	-27.56%
Taxation	(76,012)	(49,398)	53.88%
Net profit for the period	503,993	751,273	-32.91%
Basic earnings/ (loss) per share	29.65	44.19	-

Amount in thousand except for EPS

TOWL and KSE-100 YTD Performance

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