Swisstek (Ceylon) PLC (PARQ) reported 70% drop in earnings from previous quarter on a 19% drop in revenues. Compared to the same period the previous year, this was a 28% growth in earnings on a 45% revenue growth.
While gross profit margin dropped by 260bps from previous quarter, distribution expenses showed a steep increase and other income dropped. This was partly off set by reduction in Administrative expenses which seemed to show a sudden increase the previous quarter.
77% of the group’s revenue was from the Aluminium segment, which showed a decline in revenue while margins reduced to 5% from 12% the previous quarter.
This was a dent in the trend shown by PARQ which showed steady increase in revenue and earnings for the past three quarters.
PARQ declared an interim dividend of 0.50/- for 2015/16 recently and closed at 61.20/- [+0.40] and trades at 7.1x P/E
