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TREET swings to profit in 1HFY22

February 24, 2022 (MLN): Treet Corporation Limited (PSX: TREET) has posted a net profit of Rs341 million (EPS: Rs1.95) during 1HFY22, a turnaround from the same period last year when it incurred a net loss of Rs353mn (LPS: Rs1.98).

During the period under review, the company witnessed a growth of 8% YoY in topline as it went up to Rs7.75 billion. Meanwhile, the increase in the cost of sales was meagre therefore the gross margins expanded from 17.74% to 19.38%.

On the cost front, the administrative and distribution expenses dropped by 25.3% and 12.3% YoY to stand at Rs478mn and Rs290mn, respectively.

In addition, the finance cost of the company declined by 14.8% YoY to Rs457mn which also helped in strengthening the bottom line. However, the company booked a tax expense of Rs168mn during 1HFY22.

Treet has deleveraged itself by selling Global Art Limited and paying 30% of its debt to the bank, ahead of rising interest rates. The company is looking for debt re-profiling by converting ST borrowings (6bn) to LT debt out of which 50% (3bn) is already completed.

The company is planning for capital restructuring of FTMM to make equity positive and spin-off battery segment from FTMM into a separate company (IPO expected in next financial year). New Battery Company will be formed under a demerger scheme subject to approval from the high court in the next two months. NOC is already granted for the new company by SECP, a report by Foundation Securities noted. 

Consolidated Financial Results for the half-year ended December 31, 2021 ('000 Rupees)

 

Dec-21

Dec-20

Change

Revenue -Net

7,757,238

7,179,158

8.052

Cost of revenue

(6,253,718)

(5,904,911)

5.907

Gross Profit (Loss)

1,503,520

1,274,247

17.993

Administrative expenses

(289,988)

(330,933)

-12.373

Distribution cost

(478,626)

(640,817)

-25.310

 

(768,614)

(971,750)

-20.904

Operating Profit / (Loss)

734,906

302,497

142.947

Other income

250,684

87,478

186.568

 

985,590

389,975

152.732

Financial expenses

(457,681)

(537,700)

-14.882

Share of profit / (loss) of associate

19,129

8,951

113.708

 

547,038

(138,774)

Workers' Profit Participation Fund

(27,355)

(31,348)

-12.738

Workers' Welfare Fund

(10,383)

(3,617)

187.061

Profit (Loss) before taxation

   

 

Taxation

   

 

Group

(156,490)

(129,632)

20.719

Associated company

(11,651)

(6,278)

85.585

Profit / (Loss) from continuing operation

341,159

(309,649)

Profit (Loss) from discontinued operation

(43,770)

 

Profit (Loss) after taxation

341,159

(353,419)

Earnings / (Loss) per share – (Rupees)

1.95

(1.98)

 

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Posted on: 2022-02-24T17:48:36+05:00

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