Pak Elektron’s 9-month profit decreases to Rs2.97b

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KARACHI: Pak Elektron Limited’s (PAEL) profit dropped 1.15% to Rs2.97 billion in the nine months ended September 30 mainly due to increase in cost of sales and other expenditures, according to a bourse filing on Monday.

The home appliances and electrical equipment manufacturer had booked a profit of Rs3 billion in the same period last year.

Earnings per share reduced to Rs5.91 from Rs6.24.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 41,409, down 185 points or 0.45%. PAEL’s share closed at Rs67.64, down Rs3.56 as the result was below expectation.

Pak Elektron’s profit drops 6% to Rs1.62b

PAEL recorded net revenue of Rs6.69 billion which was up by 18% year-on-year on the back of higher volumetric sales in the appliances division.

Gross margins for the quarter dropped 4% to 27%, while for the nine month the margins remained stable at 30%.

Distribution cost and administration expenses jumped significantly by 87% and 72%, respectively.

“Significant increase in distribution and admin expenses is due to uptick in absolute freight cost amid higher sales volumes in appliances division, warranty claims in power division (one-off) and higher advertisement and sales promotion expenses,” AHL Research said in a post-result comment.

Finance cost jumped by 35% to Rs510 million on account of higher short-term borrowings which increased by 65% to Rs8.2 billion.

Published in The Express Tribune, October 27th, 2017.

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The post Pak Elektron’s 9-month profit decreases to Rs2.97b appeared first on The Express Tribune.

Source: Tribune News | Pak Elektron’s 9-month profit decreases to Rs2.97b

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