Fakiha Tariq

Though Ghandhara Tyre & Rubber Company Limited (GTYR) revenues and gross profit drifted higher by 18% and 7%, respectively, it bore net losses in the nine-month period (July-March) of the current fiscal year 2022-23 compared to the corresponding period of the preceding fiscal, WealthPK reports. In 9MFY23, GTYR made gross sales of Rs10.6 billion and posted a gross profit of Rs1.5 billion on it, thus coming up with a gross profit ratio of 14%. However, the company posted a net loss of Rs238 million and a net loss ratio of 2.2% in 9MFY23. Therefore, GTYR posted a loss per share of Rs1.95 during this period.

In comparison to the same period of last fiscal, the auto parts maker decreased revenues by 18% from Rs12.9 billion to Rs10.6 billion in 9MFY23. Likewise, the gross profit of Rs1.63 billion posted in 9MFY22 dropped by 7%. Compared to a net profit of Rs336 million GTYR declared in 9MFY22, it suffered a net loss of Rs238 million in 9MFY23. GTYR is the fourth-largest listed firm in the automobile parts and accessories sector, with a market capitalisation of Rs2.7 billion.

Quarterly Review

Quarter-based analysis shows that GTYR enjoyed gross profit in all the three quarters of the ongoing fiscal. However, the company made the highest gross profits in the first quarter (July- September of FY23. In terms of net profit, the company’s performance remained low in the first and second quarters, which led to a net loss in the third quarter.

In the first quarter, GTYR posted gross revenues of Rs3.19 billion and gross profit of Rs566 million. The company posted net profit of just Rs17 million in this period. Therefore, the gross and net profit ratios were reported at 17.7% and 0.6%, respectively. In 1QFY23, the company reported the earnings per share of Rs0.15.

The auto parts maker posted gross revenue of Rs3.97 billion and gross profit of Rs538 million in the second quarter (October-December). The company posted a net profit of Rs22 million. Therefore, the gross and net profit ratios stood at 13.5% and 0.6%, respectively. In 2QFY23, the company reported earnings per share of Rs0.18.

In the recently ended third quarter (January-March), GTYR earned gross revenue of Rs3.46 billion and gross profit of Rs412 million. However, the company declared a net loss of Rs278 million. Therefore, the gross profit and net loss margins for 3QFY23 came in at 12% and 8.0%, respectively. In 3QFY23, GTYR posted a loss per share of Rs2.28.

Credit: Independent News Pakistan-WealthPk