PPL: 3rd Quarter net income down 16% on reduction in other income

PPL | Pakistan Petroleum Limited

Earning Release Q3-Mar 2024 

For the quarter ending March 2024

• PPL reported a profit after tax of Rs. 27,634 million, registering a decrease of 16% over the same quarter last year. 
• The earnings per share came out at Rs. 10.16 for the quarter.
• PPL also announced a cash dividend of Rs. 1 along with the earnings disclosure. (Note that PPL has declared a total of Rs. 5 per share as cash dividends in the last four quarters.)
• On a 9-month basis, PPL announced a PAT of Rs. 96,411 million, compared to a PAT of Rs. 81,835 million in the same period last year.

To provide historical context to the earnings, note that on a twelve-month trailing basis, PPL has recorded a profit after tax of Rs. 112,513 million, compared to a profit after tax of Rs. 117,777 million last year. 

The tax rate in this quarter was 38%, compared to 35% in the same quarter last year. 

Analysis of Profit & Loss

To better comprehend changes in profit and loss in this quarter over last year, note that;

> the revenue decreased by 2.1% in this quarter, compared to last year, and the gross profit margin remained at 68% same as last year, resulting in a 2% decrease in gross profit, amounting to Rs. 1043.2 million.

> Other Income decreased by 53.8%, impacting the P&L negatively by an amount of Rs. 4,429 million, compared to last year. 

> Financial charges increased by 5.1% in this quarter, affecting the P&L by an amount of Rs. 17.8 million compared to last year.

This resulted in a profit before tax of Rs. 44,254 million for the quarter, which was lower by 12.3% over last year. Finally, in terms of taxation, PPL booked a tax of Rs. 16,620 million, which was lower by an amount of Rs. 967.9 million compared to last year. Last year, it had booked a tax of Rs. 17,588 million.

So in sum, in this quarter ending March 2024, PPL earned a profit after tax of Rs. 27,634.2 million for the quarter, which was lower by an amount of Rs. 5,264 million than last year.

Market Performance

PPL is trading at a market price of Rs. 122.1, with a price-earnings ratio of 3 and a price-to-book ratio of 0.5. PPL has a dividend yield of 4.1% on a twelve-month trailing basis.

In the last 52 weeks, the PPL stock reached a high of Rs. 137.9 and touched a low of Rs. 55.9.

Over the past 6 months, PPL returns have been 52%, compared to the 35% return of the KSE100 Index. And over the past year, PPL returns have been 89%, compared to the 72% return of the KSE100 Index. 

Market Cap & Index Weighting: Currently, PPL has a market cap of Rs. 332,285 million.

PPL has good weighting in PSX-indices is as follows. KSE100 Index: 3.55%, KSE30: 5.08%, and KMI30: 7.13%. 

 

Download: PPL third-quarter announcement.