Treet Corporation (TREET) announced its 1QFY22 financial result today, where the company has booked a consolidated profit of Rs394mn (EPS: Rs2.25) as compared to a consolidated loss of Rs166mn (LPS: Rs0.95) in 1QFY21.
The result was higher than our expectations, where the significant deviation came from higher than expected other income and lower than expected finance cost.
Gross Margins clocked in at 17.6% in 1QFY22, up by 2.25ppts YoY due to better retention prices.
The company’s revenues increased by 13% YoY in 1QFY22 due to higher sales across all segments due to countrywide lockdown 2020.
The growth trend is also visible sequentially, with sales for the quarter depicting an increase of 15%. Margin also improved considerably for the quarter arriving at 17.6% compared to 13.8% in the previous quarter.
Distribution cost went down by 11% YoY to Rs269mn, despite the increase in volumetric sales in 1QFY22.
Other income increased by 204% to Rs318mn, most likely due to higher export rebates and scrap sales.
Admin expenses increased by 14% YoY to Rs149mn, in line with the increase in inflation.
Finance cost declined by 25% YoY in 1QFY22 to Rs280mn due to retirement in debt borrowing.
Courtesy – AHCML Research