Earnings per share (EPS) reduced to Rs1.14 against an EPS of Rs4.47 in the same period last year. For Pakistan’s largest textile mill, sales declined by 5.9% to Rs12.8 billion compared to Rs13.6 billion in the first quarter of FY14. Cost of sales increased by 2.8% to Rs11.4 billion in the first quarter of FY15.
Gross profits declined by 44.3% to Rs1.4 billion, while gross margins declined by 752 basis points to 10.9% in first quarter of FY15 compared to 18.4% in the same quarter last year. “We believe power tariff hikes and the rupee appreciation against the dollar caused the erosion of profits,” Topline Securities reported on Wednesday.
Other income of the company decreased to Rs495 million in first quarter of FY15 compared to Rs672 million in the same quarter previous year, down 26.4%. Finance cost surged by 23.3% to Rs472 million while administrative expenses increased by Rs296 million during the quarter.
On a quarter-on-quarter basis, sales of the company remained fairly stable. However, cost of sales decreased by 4% from Rs11.9 billion in the fourth quarter of FY14. As a result, gross profits increased by 60% while gross margins improved by 406 basis points from 6.8% in fourth quarter of FY14.
Published in The Express Tribune, October 30th, 2014.
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