Hifsa Raja

The revenue of Dadex Eternit Limited, a producer and supplier of building materials, decreased 11.50% to Rs733 million in the first half of the ongoing financial year 2022-23 (1HFY23) compared to the same period of the previous fiscal, reports WealthPK. The company’s gross profit for 1HFY23 also fell by 50.09% to Rs69 million from Rs139 million in 1HFY22.

In 1HFY23, the company suffered an operating loss of Rs71 million compared to an operating profit of Rs33 million in 1HFY22. The company’s loss-before-tax in 1HFY23 climbed to Rs132 million from Rs58 million in 1HFY22, posting a staggering increase of 124.44% . Likewise, the firm’s net loss in 1HFY23 jumped to Rs145 million from Rs73 million in 1HFY22, showing a 99.18% growth year-on-year.

The earnings per share represents the portion of the company's profit that is allocated to each shareholder. However, the company sustained loss per share in 2019, 2020 and 2021, and 2022 as is shown in the chart. Except for 2021, the EPS growth was negative for the years 2019, 2020 and 2022. Overall, the data suggests the company experienced significant fluctuations in EPS and EPS growth over the four-year period. This suggests the company faced financial challenges during this period.

Industry comparison

Dadex Eternit Limited’s competitors include Safe Mix Concrete Limited, Fecto Cement Limited, Thatta Cement Company Limited, and Dewan Cement Limited.

Ratio analysis

Though the company’s gross profit margin fluctuated over the last four years from 2019 to 2022, it stayed in the positive territory, but the net profit margin stayed negative throughout the period, meaning the company continued to suffer net losses during the period.

A corporation may not make enough money to pay its bills and other charges if it has a negative net profit margin for several years in a row. This is often a sign of financial trouble and may imply that the business is having trouble staying competitive in its sector. Negative net profit margins may be brought on by a number of factors, including heightened competition, growing expenses, or general economic conditions in the sector or the overall economy

Company profile

Dadex Eternit was incorporated in Pakistan as a public limited company on April 13, 1959 under the now repealed Companies Ordinance, 1984 (now Companies Act, 2017). The company manufactures construction material, mainly piping systems, rubber and plastics.

Credit: Independent News Pakistan-WealthPk