June 1, 2023
Lasco Manufacturing Limited (LASM) for the year ended March 31, 2023, recorded an 19% increase in revenue to total $11.24 billion relative to the $9.48 billion recorded for the comparable period in 2022. For the fourth quarter, total revenue closed at $2.91 billion (2022: $2.43 billion), a 20% rise year over year.
Cost of sales amounted to $7.16 billion (2022: $6.00 billion) for the period, an increase of 19% year on year. As a result, gross profit of $4.09 billion was recorded for the period, 17% more than the $3.48 billion booked in March 2022. For the quarter, gross profit increased by 21% to close at $1.15 billion (2022: $818.93 million).
LASM posted other operating income of $85.21 million, compared to other operating income of $32.22 million reported for the prior year. For the quarter, other operating income totaled $120.26 million in contrast to other operating loss of $35.16 million in the previous comparable quarter.
Operating expenses closed the period at $1.48 billion compared to $1.29 billion booked for the corresponding period last year. Operating expenses for Q4 increased by 28% to $439.83 million (2022: $343.10 million).
Consequently, LASM recorded operating profit of $2.69 billion, 21% higher than the $2.22 billion booked in 2022. Q4 operating profit increased 50% to $715.92 million relative to $475.83 million in the prior comparable quarter.
Finance costs for the twelve months declined by 51% to $23.06 million compared to $47.22 million in the prior year’s comparable period. In the fourth quarter, finance costs declined 53% to $3.24 million (2022: $6.82 million).
As such, profit before taxation amounted to $2.67 billion, an increase of 23% from the $2.18 billion recorded for the previous year. Taxes recorded for the period amounted to $584.24 million (2022: $468.35 million). As a result, net profit for the twelve month period totaled $2.08 billion compared to $1.71 billion in 2022, an increase of 22% year over year. While, for the fourth quarter, net profit closed at $711.55 million (2022: $522.10 million), up by 36%.
Consequently, Earnings per share for the period ended March 31, 2023 amounted to $0.50 relative to $0.41 in 2022. For the quarter, Earnings per share totaled to $0.17 (2021: $0.13). The trailing twelve months EPS amounts to $0.55. The number of shares used in the calculations amounted to 4,132,913,151 units. The stock price closed trading on May 29, 2023 at $4.00 with a corresponding P/E of 7.94 times.
Balance sheet at a Glance:
Total assets increased 14% year on year, totalling $13.74 billion as at March 31, 2023 (2022: $12.07 billion). The increase in total assets was mainly due to a 103% increase in ‘Short-term investments’ to total $1.66 billion (2022: $818.65 million). ‘Inventories’ also contributed to the growth closing at $2.16 billion (2022: $1.62 billion).
Total shareholders’ equity amounted to $11.10 billion as at March 31, 2023 (2022: $9.35 billion). Consequently, book value per share amounted to $2.69 relative to $2.26 in 2023.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
