By Babajide komolafe

Chellarams PLC have posted a 35 per decline in profitability for its nine months operating period ending December 31st 2012 due to rising operating cost.

NPF Microfinance Bank however recorded mixed profitability for its nine month operating period ending December 31st.

The unaudited result of the Chellarams submitted to the Nigeria Stock Exchange (NSE) show that profit before tax (PBT) dropped to N173.87  million from N271.32 million in the comparable period in 2011. Profit after tax (PAT) also fell by 43 per cent to N119.04 million from N212.49 million.

During the period the Chellarams recorded 9.3 per cent decline in turnover which fell to N17.41 billion from N19.194 billion.

The sharp fall in the company’s profitability was caused by rising operating cost as reflected by the figures for distribution/admin expenses, and finance cost. Distribution/Admin expenses rose by 10 per cent to N2.01 billion from N1.89 billion. Finance cost also shot up by 33 per cent to N475.36 million from N357.25 million.

The share price of Chellarams opened the year at N5.71 per share but it had dropped to N5.43 per share as at last week.Its audited full year result ending March 2012 results show Turnover of N25 billion, PBT of N360.9 million and PAT of 231.6 million, while it paid dividend of 10 kobo per share.

On its part, NPF Microfinance Bank recorded mixed profitability result. Unaudited nine month results of the bank released to the NSE show a 11.9 per cent decline in profit before tax (PBT) to N497.98 million from N565.69 million while Profit After Tax (PAT) rose slightly by 13 Per cent to N487.91 million from N424.27.

The Bank’s grow earnings rose by 36.7 per cent to N1.236 billion from N903.7 million, while Net Assets also rose marginally to N3.754 billion.

The Bank’s operating result for full year ending March 31st 2012 show that it recorded N1.235 billion gross earnings, PBT of N176.8 million and PAT of N113.7 million.

The Share price of the bank has however been on the downward trend, falling from N1.18 per share as at December 28th 2012 to 99 kobo as at the close of trading last week.