Increased Expenses Chips Away Some of Elites Profit

• Despite a 20.1% (or $58.04Mn) increase in revenue, Elite Diagnostic Limited recorded a 16.4 contraction in net profit for the nine months ended March 31, 2020. Net profit declined to $19.07Mn (EPS: 5¢) from $22.81Mn (EPS: 6¢) reported in the corresponding period in 2019.
• The main contributor to this performance was increased expenses: administrative expenses increased 8.0% (or $9.60Mn), depreciation expenses climbed 32.1% (or $13.40Mn), while finance cost increased by 13.0% (or $1.80Mn).
• Elite Diagnostic Limited stock price has fallen by 31.9% since the start of the calendar year, and closed Wednesday’s trading session at $3.40.  The stock currently trades at a P/E of 24.3x earnings, which is above the Junior Market Average of 19.6x.

(Source: Elite Financials)