Fakiha Tariq

Loads Limited (LOADS) revenue, gross and net profits decreased by a substantial 35%, 32% and 90%, respectively, in the nine months (July-March) of the ongoing fiscal year 2022-23 compared to the corresponding period of the last year, WealthPK reports. The small-cap auto parts maker’s gross sales stood at Rs3.72 billion, gross profit at Rs418 million and net profit at Rs24 million in 9MFY23. In 9MFY23, LOADS came up with a gross profit ratio of 11%. However, due to considerable decrease in net level profitability, the company posted a net profit ratio of merely 0.7% in 9MFY23. LOADS posted earnings per share of Rs0.10 during the period under review.

In comparison to Rs5.73 billion  in the corresponding period of FY2, LOADS’ revenues decreased to Rs3.72 billion in 9MFY23. Likewise, the gross profit declined to Rs418 million in 9MFY23 from Rs617 million in 9MFY22. LOADS’ net profit of Rs252 million declared in 9MFY22 heavily shrank to Rs24 million in 9MFY23. The company’s nine-monthly earnings per share value moved down from Rs1.00 to Rs0.10 in 9MFY23. Registered on the Pakistan Stock Exchange (PSX) with the symbol “LOADS”, the company is categorised as the seventh firm in the automobile parts and accessories sector with a market capitalisation of Rs1.7 billion. Major competitors include Exide Pakistan Limited, Agriauto Industries Limited and Ghandhara Tyre and Rubber Company Limited.

Quarterly review

Quarterly analysis reveals that LOADS maintained gross level profits in all the three quarters of FY23. However, on the net level, the auto parts maker bore net loss during the first quarter (July-September) and third quarter (January-March) of the ongoing fiscal. The company only maintained gross and net profitability in the second quarter (October-December). In the first quarter, LOADS posted gross revenues of Rs1.33 billion and gross profit of Rs160 million. The company posted net loss of Rs11.3 million. Therefore, the gross profit ratio and net loss ratio were reported to be 12% and -0.9%, respectively. In 1QFY23, the company reported the loss per share of Rs0.05.

In the second quarter, the company posted gross revenue of Rs1.55 billion and gross profit of Rs174 million. The company posted net profit of Rs38 million. Therefore, the gross profit and the net profit ratios were calculated at 11% and 2.5%, respectively. In 2QFY23, the company reported the earnings per share of Rs0.16. In the third quarter, LOADS raised the gross revenue of Rs841 million and gross profit and net loss of Rs83 million and Rs3.2 million, respectively. Thus, the gross profit and net loss margins for 3QFY23 turned out to be 10% and 0.4%, respectively. In 3QFY23, the company posted loss per share of Rs0.01.

Credit: Independent News Pakistan-WealthPk