KARACHI (October 05 2004): The profit of the Dewan Farooq Motors Limited recorded a burgeoning growth of 60 percent to Rs 223.44 million for the year ended June 30, 2004 as against Rs 139.71 million during the corresponding period last year.
The company also announced a final cash dividend of 10 percent and bonus shares of five percent as compared with 10 percent dividend a year ago.
For the period ended June 30, 2004, the sales rose by 40 percent to Rs 6,587.288 million against Rs 4,695.993 million reported during last year.
However, due to rising steel prices and depreciating rupee, the gross margin of the company reported a decline of 276 basis points.
The company's gross profit for the period amounted to Rs 705.75 million against Rs 632.62 million, posting a growth of 12 percent.
The decline in gross margin coupled with the increase in operating expenses mitigated the impact of higher sales, which is reflected in a meagre one percent increase in operating profit.
The operating profit of the company stood at Rs 423.55 million against Rs 418.98 million in FY03.
However, a significant reduction was witnessed in the financial charges that dropped by almost 62 percent to Rs 76.550 million against Rs 200.374 million reported last year.