Gul Ahmed Textile Mills Limited’s (PSX: GATM) bottom line fell by 41.60% year over year to Rs 2.17 billion (EPS: Rs 3.53) in the first half of the company’s fiscal year 2023 from Rs 4.72 billion at the same point the year before.
Higher finance costs, which rose 92% annually to Rs 2.6 billion in the first half of fiscal year 2023, are to blame for the decline in profitability. According to the financial statement, the company’s net sales came in at Rs 62 billion, up just 9.42% from the previous year, while the cost of sales increased by more than 13% to Rs 50 billion during the review period.
The result was a decrease in the company’s gross margins, which dropped from 21.1% in the same period last year to 18.44% in the first half of fiscal year 2023. Operating expenses for the company were reported at Rs. 6.57 billion, up from Rs. 6 billion during the same time last year.
The company’s other income climbed by 4.8 times year over year in the first half of its fiscal year 2023, among other line items. In comparison to the first half of the fiscal year 2022, when the company paid Rs. 989.43 million, it paid Rs. 11.3 billion throughout the period.