Avanceon Ltd, a leading automation innovator, has announced its consolidated financial results for the first quarter ended 31 March 2020.
In the first quarter of 2020, the company announced a huge increase of 161.31 percent in its earnings. It reported a profit of 384.96 million rs compared to 147.32 million rs earned last year in the same period.
The increase in earnings was seen as a result of improved sales and other operating revenues. Sales were reported at Rs. 968.40 million during the quarter, translating into an increase of 40 percent compared to Rs. 697.07 million in the corresponding period of the last year.
There was an increase in revenue cost of 45 percent as it was posted at Rs. 630.32 million compared to Rs. 433.59 million. This brought the gross profit to Rs. 338.08 million, compared with Rs. 263.49 million reported last year in the same period.
The administrative and advertising expenses were up 36 percent to Rs. 152.04 million compared with Rs. 111.83 million. However, the effect of this has been negated somewhat by the 36 percent decrease in other operating expenses.
Sales have seen an incredible 840 percent rise. It increased from Rs. 24.17 million by 8.4x to Rs. 227.15 million.
Finance costs were reduced to Rs. 25.15 million compared to Rs. 25.81 million, down 3 percent. The company’s earnings per share rose to Rs. 2.00 compared with Rs. 0.77.
The company mentioned delays in recognition of revenues in the first and second quarters of 2020 due to COVID-19, according to Avanceon’s recently released annual report for the year 2019.
“In the last month of the 1st quarter of 2020, we faced a one-month total shutdown that impacted our order generation and revenue recognition by about 80 percent. Definitely being a technology company our ability to work remotely is tremendous which allows us to carry out projects, deliver revenue even in situations accumulated due to COVID-19 Pandemic, this has been the cornerstone of our business plan anyway,” the report added.
It further added that the COVID-19 pandemic problem can, directly and indirectly, affect some of their current project executions, commercial approvals, and also related inflows.
The organization warned in its annual report that the Novel Coronavirus outbreak (COVID-19) is continuing to advance and develop. Hence, the full extent and duration of its business and economic impact is now challenging to predict. The COVID-19 outbreak has had a distressing effect on the global economy’s overall demand, with a significant decline in growth forecasts.
However, due to working from home, it is projected to save about Rs. 17 million and Rs. 12.5 million in fixed costs respectively in Pakistan and the Middle East during this time period.
“Our company is committed to paying full wages to both our regular and contract employees and no workers will be fired or terminated during this COVID-19 period,” the report said.