Error in SHL EPS calsulation ?

the contrarian · 1 Error in SHL EPS calsulation ? Fri Nov 11, 2011 7:11 pm

the contrarian

Stock Analytic

Posts : 14
Equity Stars : 4875
Reputation : 2
Join date : 2011-08-14

Hello good people,,,

i was going through the SHL 2QTR results and noticed something amiss in the EPS calculation...

The company has more than doubled its earnings over corresponding year and this is an except from chairman message,,,

"Group Turnover increased by 159% to Rs. 9.91
billion
• Group Profit Before Tax (PBT) increased by
213% to Rs. 1.09 billion
• Group Profit After Tax (PAT) increased by
213% to Rs. 869 million
• Group profit attributable to equity holders

The exact figure of earnings after tax is Rs. 869,389,053 for the first half 2011.
issued quantity of shares is 779,000,000 therefore,
eps should be 869,389,053/779,000,000= 1.116

Instead the figure reads as 0.70 in the income report.

the 1QTR report is in line as it had earnings of Rs. 368,794,625 and its EPS was 0.42.

In simple sense 1QTR EPS was .42 and the company has nearly doubled earnings since.,,, so it cant be 0.70.

Please comment if you notice this,,,

i may be missing something here,,,,

thanks in advance,,,

happy investing,,,,

Last edited by rijayasooriya on Fri Nov 11, 2011 8:55 pm; edited 2 times in total (Reason for editing : spelling mistake and title shortened)

mono · 2 Re: Error in SHL EPS calsulation ? Fri Nov 11, 2011 7:30 pm

mono

Vice President - Equity Analytics

Posts : 1167
Equity Stars : 6488
Reputation : 93
Join date : 2011-01-21
Age : 103

Group profit attributable to equity holders is 499,878,925

therefore, eps= 499,878,925/779,000,000=0.6416931

but when you do the weighted average number of shares thing it comes to .7

ccsentha · 3 Re: Error in SHL EPS calsulation ? Sat Nov 12, 2011 12:36 am

ccsentha

Vice President - Equity Analytics

Posts : 1021
Equity Stars : 6470
Reputation : 20
Join date : 2011-04-22

It seems so to me.

Profit has increased from last quarter, but EPS has decreased from last quarter, how can it be possible?

Slstock · 4 Re: Error in SHL EPS calsulation ? Sat Nov 12, 2011 5:35 am

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13570
Reputation : 1158
Join date : 2011-01-22

ccsentha wrote:It seems so to me.

Profit has increased from last quarter, but EPS has decreased from last quarter, how can it be possible?

The profit attributable to share holders is comparatively very much less. Minority interest has more profit attributed than shareshoders

the contrarian · 5 Re: Error in SHL EPS calsulation ? Sat Nov 12, 2011 10:36 am

the contrarian

Stock Analytic

Posts : 14
Equity Stars : 4875
Reputation : 2
Join date : 2011-08-14

thanks everyone for shedding light on the matter,,,

I just calculated that SHL has allocated nearly 55% from profits as minority interest for the 2QTR!
nearly 43% from profits for the first half 2012!

quite a steep ratio!

i wonder what the thinking is...........

thanks again

happy investing,,,