SNGPL Financial Results: Company earns Rs 15.8b profits for 2020-21
SNGPL has declared a historical high profit before tax of RS. 15.84 billion in financial results for FY 2020–21 and recommends 50% cash dividends. It also declares the first quarter accounts for the financial year 2021-22. SNGPL’s financial results have been remarkable as the company made a record profit.
During the year ended June 30, 2021, SNGPL earned a profit before tax of Rs. 15.84 billion, a profit after tax of Rs. 10.99 billion, and an EPS of Rs. 17.32, as compared to a profit before tax of Rs. 8.42 billion, a profit after tax of Rs. 5.99 billion, and an EPS of Rs. 9.46 during the corresponding period of last year.
Based on the declared profit, the company has proposed a final cash dividend of 50% (in addition to an interim cash dividend at the rate of Rs. 2.00 per share of Rs. 10/-each, i.e., 20% already paid) for FY 2020–21.
Some of the significant factors which helped the company achieve the results are listed below.
Decrease in UFG percentage from 12.32% to 8.60% reducing UFG disallowance from Rs. 11.7 billion in FY 2019-20 to Rs 3.4 billion during the year ended June 30, 2021.
The company had made efforts to achieve a substantial reduction in UFG due to the concerted efforts of the Board and the management.
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It had set an ambitious target for UFG reduction and achieved tangible results in respect of them.
Re-negotiation of finance costs on the borrowing facilities coupled with the reduction in interest rates by SBP helped Company reduce the finance cost by over Rs 8 billion.
Moreover, SNGPL has also declared its quarterly results for the first quarter ended September 30, 2021.
During the period under review, the Company has earned profit before tax amounting to Rs 4.27 billion, profit after tax of Rs. 3.03 billion and EPS of Rs. 4.78 against a profit before tax amounting to Rs 4.47 billion, profit after tax of Rs. 3.18 billion and EPS of Rs. 5.01 for the corresponding period.
Despite all the economic challenges and financial constraints, the Company has not only maintained its pace but is accelerating its momentum and is confident of promising results in future.
The company’s management has also achieved the timely completion of targets of infrastructure development and the continuous focus of the Board of Directors on various initiatives taken by the Company. Management and staff of the company have also expressed confidence in the performance of the company and hoped for a boost in the years ahead.
