October 23, 2025 (MLN): Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) reported a profit after tax of Rs29.16 million for the quarter ended September 30, 2025, showing a 37.9% increase from Rs21.14m in the corresponding quarter last year.

The company’s earnings per share (EPS) rose to Rs0.24, up 41.2% from Rs0.17 in the same period of FY24.

Despite the profit growth, sales declined 3% year-on-year to Rs3.75bn from Rs3.86bn, while the cost of sales fell 2.5% to Rs3.15bn from Rs3.24bn.

As a result, gross profit contracted 5.5% to Rs593.9m, compared to Rs628.8m last year. The gross margin slightly eased to 15.8% from 16.3%, indicating mild margin pressure on the back of lower turnover.

Administrative expenses increased 11.5% to Rs100m, while distribution costs rose 15.1% to Rs176.1m due to higher marketing and logistics expenses.

Other income decreased 39.2% to Rs22.3m, whereas other expenses surged 130% to Rs4.6m.

The company’s operating profit stood at Rs335.5m, marking a 20.3% decline from Rs420.8m in the same quarter last year.

However, finance costs eased 23.2% to Rs302.1m from Rs393.5m, providing partial relief to the bottom line.

Profit before taxation rose 4.4% year-on-year to Rs8.1m, while taxation reversal increased sharply by 57.5% to Rs21m, boosting the after-tax earnings.

Additionally, the share of profit from an associated company jumped 259.4% to Rs7.8m, contributing positively to the quarterly results.

Consequently, GTYR concluded the quarter with a net profit margin of 0.78%, up from 0.55% in the prior year, supported by a significant taxation reversal and improved contribution from associates despite reduced operating performance.