Pakistan Hotels Developers Limited (PHDL), listed on the Pakistan Stock Exchange (PSX) as PHDL, witnessed an impressive surge in its profitability during the first quarter of 2024. The company’s profit after tax skyrocketed to Rs85.38 million, a remarkable increase from Rs15.38 million in the same period last year. This surge translates to an earnings per share (EPS) of Rs4.74, compared to Rs0.85 in the previous year.
Financial data reveals that PHDL’s revenue also saw a significant uptick, with a 36.9% increase year-on-year, reaching Rs195.27 million. Despite a rise in the cost of sales by 14.3%, the increase was proportionately less than the sales growth, resulting in a substantial improvement in gross profit, which surged by 64.3% to Rs105.9 million in Q1 2024. Consequently, the gross margins expanded to 54.23% from 45.19% in the previous year.
During the review period, PHDL recorded an additional income of Rs71.79 million. However, on the tax front, the company incurred a significantly higher tax expense of Rs40 million, compared to Rs0.65 million paid in the corresponding period of the previous year. Despite the increased tax expense, PHDL’s robust financial performance underscores its resilience and ability to capitalize on opportunities in the market.