TOWL declares Rs8 dividend despite 77% profit drop in FY24

September 26, 2024 (MLN): Towellers Limited (PSX: TOWL) witnessed a major setback in FY24 as its earnings plummeted by 76.57% to Rs559.5 million [EPS: Rs32.91], compared to the bottom line of Rs2.39bn [EPS: Rs140.49] in the previous fiscal year.

Nonetheless, TOWL rewarded its shareholders a final cash dividend of Rs8 per share for the year ended June 30, 2024.

According to the company's profit and loss account, its top line increased by 11.1% to Rs12.31bn as compared to Rs11.09bn in FY23.

As the growth in sales was not significant enough to cover TOWL's rising costs, the gross profit worsened by 60.8% to Rs1.23bn in FY24..

The gross margins worsened to 10% as compared to 28.3% in SPLY.

TOWL faced additional drains as its subheads under the expense section saw a notable rise.

The company's administrative expenses rose 9.1% YoY to Rs398.49m, while distribution costs surged 15.8% YoY to Rs345.93m.

On the other hand, other operating expenses fell 40.6% YoY to Rs109.11m.

Providing slight support, other income increased 35.1% to stand at Rs457.68m in FY24 as compared to Rs338.88m in SPLY.

The company’s finance cost also slid by 42.2% and stood at Rs31.1m as compared to Rs53.85m in SPLY.

On the tax front, the company paid a higher tax worth Rs245.66m against the Rs191.78m paid in the corresponding period of last year, depicting a rise of 28.1%.

Consequently, the rise in costs of sales, operating expenses, and significantly higher tax expenditures resulted in declining earnings for the company.

Amount in thousand except for EPS

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