Suraj Cotton Mills Limited reported an 11.8 per cent increase in annual profits due to 517 per cent rise in tax reversals.
In a Board of Directors meeting held on August 31, 2018, the company’s financial earnings for the year ended June 30 2018 were reviewed and compared to the annual earnings made during the year ended June 20, 2017.
Based on the year-on-year (YoY) comparison, Suraj Cotton Mills’ net sales increased by 33.5 per cent. Since the cost of sales rose by a comparatively smaller margin, the company’s gross profits went up by 72 per cent.
However, total expenses grew by 172 per cent, while finance costs increased by 98 per cent leading to an 11.8 per cent drop in pre-tax entry.
Fortunately for the company, tax reversals increased by a huge margin, preventing a fall in profits for the year.
Additionally, basic and diluted earnings per share dropped for Rs19.19 during the last year ended on June 30 2017, to Rs17.73 during the year ended on June 30 2018.
