Gul Ahmed Textile Mills Limited (GATM) announced its full-year FY14 result on Monday posting net profit-after-tax of Rs 1.23 billion (earnings per share of Rs 6.75) up 65 per cent as compared to Rs 711 million (EPS of Rs 4.09) in FY13, a company statement said. The result also accompanied a final cash dividend of Rs 1.5 per share and a bonus of 25 per cent.
“The result was in line with our estimates,” said Jehanzaib Zafar, an analyst at BMA Capital.
The increase in profitability can be attributed to a 25 per cent increase in gross profit due to better volumetric off-take, a eight per cent year-on-year decrease in the finance cost and other income posting a jump of 5.1 times to Rs 235 million.
In the fourth quarter of FY14 alone, the company posted a profit of Rs 231 million (EPS of Rs 1.26) as compared to the net profit-after-tax of Rs 451 million (EPS of Rs2.47) in 3QFY14.
The decline in profitability is attributable to five per cent quarter-on-quarter appreciation in the rupee value against the dollar and higher taxation.
