Earnings per share increased to Rs22.15 from Rs7.52 in the period under review. The company also announced a final cash dividend of Rs5 per share or 50% for the year.
The increase in earnings came primarily due to the tax rebate claimed by the company in the fourth quarter (4QFY15), which consequently resulted in tax refund of Rs405 million, Global Research reported on Thursday.
The result was above market consensus estimates, Topline Securities commented. On a quarter-on-quarter basis, the after-tax profit increased by 342% to Rs1.58 billion in the January-March quarter mainly due to the tax refund.
The company’s top-line for FY15 declined by 4% to Rs37.76 billion. Revenues dropped mainly due to lower sales of completely knocked-down (CKD) units, which fell by 0.10% to 23,287 units, and the company’s initiative to reduce prices of cars following appreciation of the rupee against the dollar, the report said.
Gross profit for the year improved by 67% to Rs4.77 billion, with gross profit margins at 12.6%. The primary reasons for these improvements were 2% appreciation of the rupee against the dollar and initiatives pertaining to localisation, which reduced the company’s exposure to foreign exchange and tariff.
Following the uptick in the rupee-dollar parity by 4% year-on-year from Rs98.34 per dollar at the end of FY14, other expenses increased by 24% to Rs452 million as a majority of the company’s payables were denominated in the dollar.
The advertising campaign launched by the company during the period pushed up marketing and distribution expenses by 25% to Rs434 million.
Published in The Express Tribune, May 15th, 2015.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
1736147353-0/Untitled-design-(60)1736147353-0-405x300.webp "article")
COMMENTS (1)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ