|Rupees in Millions|
As of June 30, 2020, variation as compared to June 30,2019 is as follows:
- Shareholders' equity decreased by 5.1% primarily due to loss incurred during the year.
- Non-current assets increased by 48.6% mainly due to:
- Current assets decreased by 23.8% due to following reasons.:
- Increase in non-current liabilities by 54.9% mainly due to first time recognition of lease liabilities on account of implementation of IFRS 16 - Leases.
- Decrease in current liabilities by 25.3% primarily due to decline in following:
Company reported loss after tax during the year primarily on account of following elements:
- Decline in gross profit by 66.1% vs last year mainly due to inventory losses on account of sharp decrease in international oil prices during the year.
- Increase in finance cost by 49.4% vs. last year mainly due to higher average policy rate of State Bank of Pakistan (SBP) in FY20.
The above mentioned decline in gross profit and increase in finance cost is partially offset by lower exchange losses and higher interest income recovered from power sector during the year.
|Rupees in Millions|
|Gross profit / (loss)||10,706||6,970||2,465||(7,914)||12,227|
|Share of profit of associate - net of tax||145||168||145||86||544|
|Profit / (loss) before taxation||6,216||4,842||(3,443)||(12,749)||(5,134)|
|Profit / (loss) after taxation||3,528||2,907||(3,426)||9,475||6,466|
Gross sales declined in 3rd & 4th quarter primarily due to decline in international oil prices during the period.
Gross profit went down in 2nd and 3rd quarter and turned into loss in 4th quarter primarily on account of inventory loss due to decline in international oil prices.
Other income was highest in 2nd quarter primarily due to significant receipt of late payment interest from power sector in that period.
Finance cost continued to rise till the 3rd quarter mainly due to increase in interest rates however, it went down in 4th quarter due to dip in SBP's policy rate.
The variation in cash flows as compared to FY19 is due to the following:
In FY20, cash flow from operating activities is positive as compared to negative cash flow last year. The cash flows have improved in FY20 primarily due to recoveries from power sector, recoveries of exchange loss on FE borrowings from Government and decline in stock in trade.
In FY20, cash outflow from investing activities has increased primarily due to additions in property, plant and equipment and increase in investment in Pakistan Refinery Limited.
In FY20, cash flow from financing activities is negative as compared to positive cash flow last year. The cash flow is negative primarily due to loans repaid during the year on account of recoveries from power sector, recoveries of exchange loss on FE borrowings from Government and decline in stock in trade.