The company’s financial performance for the first quarter of FY24 reflects both positive and challenging aspects. Here’s a detailed analysis of the key financial indicators:
1. Net Sales: The company’s net sales have experienced substantial growth, surging by 101.1% YoY to reach 2,292 million Rupees. This remarkable increase demonstrates the strong demand for the company’s products or services.
2. Gross Profit: Gross profit increased by 63.2% to 270 million Rupees. The growth in gross profit suggests that the company effectively managed its cost of sales and maintained healthy profit margins.
3. Operating Profit: The company’s operating profit saw a significant YoY increase of 73.0%, reaching 119 million Rupees. This points to efficient cost management and improved operational efficiency.
4. Other Income: Other income, however, experienced a substantial decline of 79.5% to 18 million Rupees. This decrease had a notable impact on the company’s overall profitability.
5. Profit Before Taxation: The profit before taxation decreased by 39.1% to 75 million Rupees. This decline is primarily attributed to the reduced other income and a notable increase in finance costs.
6. Profit After Taxation: The profit after taxation was 52 million Rupees, showing a decrease of 53.5% compared to 1QFY23. The decrease is largely due to the significant increase in taxation.
7. Earnings Per Share (EPS): Earnings per share declined by 53.5% to 0.38 Rupees, reflecting the drop in profitability during the quarter.
8. Margins: The company’s gross margin declined by 2.7%, indicating some pressure on the cost of sales. Despite this reduction, the company maintained a strong gross margin of 12%. The operating profit margin showed a slight reduction but remained healthy at 5.2%.
9. Taxation: The company experienced a significant increase in taxation, with the effective tax rate increasing from -10% to -31%. This increase in tax expenses significantly impacted the company’s profitability.
10. Dividend and Bonus: The company did not declare any dividends in this quarter and did not announce any bonuses.
In conclusion, the company’s 1QFY24 performance indicates robust revenue growth and a maintained healthy profit margin. However, profitability has been impacted by a notable increase in taxation and a significant reduction in other income. It’s essential for investors to monitor the company’s ability to manage expenses and improve its tax situation in the future. The absence of dividend payments and bonuses may reflect the company’s current financial strategy or business needs. Investors should watch for the company’s full-year performance to gain a more comprehensive understanding of its financial health and prospects.
| Rupees’ millions | 1QFY24 | 1QFY23 | YoY | FY23 | FY22 | YoY |
| Net Sales | 2,292 | 1,140 | 101.1% ▲ | 6,365 | 4,658 | 36.7% ▲ |
| Cost of Sales | -2,023 | -975 | 107.5% ▲ | -5,512 | -4,048 | 36.2% ▲ |
| Gross Profit | 270 | 165 | 63.2% ▲ | 853 | 610 | 39.9% ▲ |
| SG&A Expenses | -143 | -89 | 60.8% ▲ | -534 | -379 | 41.1% ▲ |
| Other Expenses | -7 | -7 | 3.1% ▼ | -24 | -32 | 25.1% ▼ |
| Operating Profit | 119 | 69 | 73.0% ▲ | 295 | 199 | 48.2% ▲ |
| Other Income | 18 | 90 | 79.5% ▼ | 675 | 345 | 95.8% ▲ |
| Finance Cost | -62 | -35 | 76.3% ▲ | -181 | -88 | 104.7% ▲ |
| Profit Before Taxation | 75 | 124 | 39.1% ▼ | 789 | 455 | 73.2% ▲ |
| Taxation | -23 | -12 | 92.2% ▲ | -67 | -44 | 51.8% ▲ |
| Profit After Taxation | 52 | 112 | 53.5% ▼ | 722 | 411 | 75.5% ▲ |
| Earnings Per Share | 0.38 | 0.83 | 53.5% ▼ | 5. | 3. | 75.5% ▲ |
| Dividend | 0.00 | 0.00 | 0.00 | 0.00 | ||
| Bonus | 0.00 | 0.00 | 1.00 | 0.10 | ||
| Gross Margin | 12.% | 15.% | 2.7% ▼ | 13.% | 13.% | 0.3% ▲ |
| SG&A Expenses to Sales | -6.% | -8.% | 1.6% ▼ | -8.% | -8.% | 0.3% ▲ |
| Other Income to Sales | 0.8% | 8.% | 7.1% ▼ | 11.% | 7.% | 3.2% ▲ |
| Ex. Gain / (Loss) to Sales | -6.% | -8.% | 1.6% ▼ | -8.% | -8.% | 0.3% ▲ |
| Effective Taxation | -31.% | -10.% | 21.3% ▲ | -9.% | -10.% | 1.2% ▼ |
| Net Margin | 2.% | 10.% | 7.5% ▼ | 11.% | 9.% | 2.5% ▲ |
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