TGL has released its 4QFY23 financial results, reporting a Profit After Tax (PAT) of PKR 328 million, equivalent to an Earnings Per Share (EPS) of PKR 1.90. This represents an improvement compared to the PAT of PKR 295 million (EPS: PKR 1.71) recorded in the same period last year (SPLY).
During FY23, the company’s total revenue decreased by 3% Year-on-Year (YoY) to reach PKR 28.4 billion. This decline is possibly due to lower sales volumes. In 4QFY23, the company witnessed a notable 17% decline in revenue compared to the previous quarter, amounting to PKR 6.6 billion.
In Full Year FY2023, TGL’s Profit after tax witnessed a decline of 39 percent to PKR2.5 Billion.
Gross margins for 4QFY23 stood at approximately 23%, a significant improvement from the approximately 16% recorded in SPLY. This 7-percentage-point increase is likely attributed to better product prices. On a quarterly basis, gross margins also saw a 2-percentage-point uptick.
Finance costs in 4QFY23 decreased by 3% YoY and 30% Quarter-on-Quarter (QoQ) due to a reduction in debt levels. However, over the course of FY23, finance costs increased to PKR 508 million from PKR 343 million in SPLY, representing a 47% rise.
The effective tax rate for the quarter was approximately 70% in 4QFY23, compared to 30% in the preceding quarter. This increase is mainly due to the imposition of a super tax.
In addition to the financial results, the company announced a cash dividend of PKR 6.0 per share.
TGL’s improved PAT and gross margins in 4QFY23 suggest positive developments, likely driven by better product pricing and lower finance costs. However, the decline in revenue during FY23 raises questions about the company’s sales volumes, which may need to be addressed in future quarters to ensure sustained growth.
| (PKR mn) | 4QFY23 | 4QFY22 | 3QFY23 | YoY | QoQ | FY23 | FY22 | YoY |
| Net Sales | 6,614 | 7,983 | 7,903 | -17% | -16% | 28,427 | 29,416 | -3% |
| Cost of Sales | 5,083 | 6,681 | 6,234 | -24% | -18% | 22,693 | 21,667 | 5% |
| Gross Profit | 1,531 | 1,301 | 1,670 | 18% | -8% | 5,734 | 7,749 | -26% |
| GM% | 23% | 16% | 21% | 20% | 26% | |||
| Other Income | 1 | 43 | 61 | -97% | -98% | 128 | 112 | 13% |
| Financial Charges | 90 | 93 | 128 | -3% | -30% | 508 | 346 | 47% |
| PBT | 1,085 | 970 | 1,295 | 12% | -16% | 4,118 | 6,268 | -34% |
| Taxation | 757 | 674 | 394 | 12% | 92% | 1,599 | 2,127 | -25% |
| PAT | 328 | 295 | 902 | 11% | -64% | 2,519 | 4,141 | -39% |
| EPS | 1.9 | 1.71 | 5.24 | 14.63 | 24.05 | |||
| DPS | 6 | 2 | 6 | 2 |
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