Jawad Ahmed

The revenue of Dawood Hercules Corporation Limited, on a consolidated basis, increased by 24.6% to Rs88.37 billion in the first quarter of 2022 from Rs70.87 billion in the corresponding period of the previous year, reports WealthPK

The principal activity of the company is to manage investments including in its subsidiaries and associated companies.

The company’s gross turnover increased to Rs27.2 billion in 1QCY22 from Rs24.8 billion in 1QCY21, showing a growth of 9.7%.

The consolidated Profit-After-Tax (PAT) for the quarter was Rs14.7 billion, while the PAT attributable to the shareholders is Rs2.78 billion against Rs3 billion in the comparative period, resulting in an earnings per share (EPS) of Rs5.77 compared to Rs6.24 in same period last year.

Performance over the years

Since the calendar year 2017, the company’s sales revenue has increased, and its profitability ratios have continued to maintain the momentum.

In 2018, the company’s overall revenues increased to Rs171.57 billion from Rs128.59 billion in 2017.

The company reported an after-tax profit of Rs33.15 billion for the same year as opposed to Rs16.25 billion the year before, showing an increase of 104%. As a result, the EPS increased from Rs7.19 to Rs15.76.

In 2019, the consolidated revenue was Rs225.77 billion as compared to Rs171.57 billion for the similar period last year, mainly driven by the energy projects coming online during July 2019 and augmented by the higher turnover of fertilizer and petrochemical businesses.

Strong operational performance of all businesses translated into a consolidated profit-after-tax of Rs29.79 billion in 2019 as compared to Rs33.15 billion in 2018 due to one-time gain on sale of investment in HUBCO.

The EPS for the year were Rs11.75.

In 2020, the net revenues of the company increased to Rs248.88 billion as compared to Rs225.77 billion in previous year.

Therefore, the company recorded gross profit of Rs75.94 billion, showing a growth of 10.7% over the previous year’s Rs68.60 billion.

The strong operational performance of all businesses translated into a consolidated profit after tax of Rs42.35 billion as compared to 29.79 billion in 2019.

As a result, the EPS increased to Rs15.76 from Rs11.75.

In 2021, the company’s consolidated revenue grew by 25%, to Rs311.78 billion from Rs248.88 billion in 2020.

The company recorded gross profit of Rs99.39 billion, showing a growth of 31% over the previous year’s Rs75.94 billion.

The profit-after tax for 2021 was Rs50.73 billion, up by 19% from Rs42.35 billion in the previous year, translating into EPS of Rs17.71.