tTech Reports Reduction in Profit

• Net profit at tTech Limited edged down 23.5% ($3.91Mn) for the six months ended June 30, 2020, despite growth in revenues and other income of 8.5% (or $13.36Mn) and 49.9% (or $2.56Mn), Net profit declined to $12.73Mn (EPS: 12¢) from $16.64Mn (EPS: 16¢) in the corresponding period of 2019.
• The main contributor to this performance was a 55.0% (or $19.05Mn) growth in the cost of sales—to facilitate the increase in revenues—as well as a 6.2% ($5.78Mn) increase in administrative expenses. The company’s bottom line was also affected by the $1.21Mn in finance cost for the review period, relative to 2019 where there was no finance cost recorded.
• The stock has fallen 8.3% since the start of the calendar year. tTech closed Tuesday’s trading session at $5.98 and currently trades at a P/E of 31.5x earnings which is above the Junior Market Average of 23.4x.

 (Source: tTech Financials)