Pak Elektron profit down 9.8pc

KARACHI: Pak Elektron Limited (PEL) profit for the year ended December 31, 2017 fell 9.8 percent year-on-year most likely owing to a surge in distribution cost, analysts said on Friday.

The company, in a bourse filing, said it posted a net profit of Rs3.308 billion for the period under review, whereas its profit for year 2016 was recorded at Rs3.669 billion. The earnings per share (EPS) clocked in at Rs6.56 as against Rs7.51 last year.

The company also declared a final cash dividend of Rs1.2/share, which is in addition to the interim dividend of Rs1.5/share already paid to the shareholders. Net revenues for the year stood at Rs31 billion in 2017, up 15.6 percent from Rs26.8 billion a year ago.

This decline in profitability can be attributed to higher distribution cost, which stood at Rs1.118 billion in 2017 compared to Rs884.1 million in 2016. Other income also declined to Rs17.7 million for the year under review as against Rs37.31 million previously.