May 28, 2022

SB-Accounting

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ETranzact PAT dropped by 36.2 Percent

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Nigeria payment system giant eTranzact report shows a drop in it’s Profit After Tax, PAT by 36.2 percent for it’s 2016 Financial report. The ICT company makes PAT of N449,486 as opposed to N704,704 it realised in 2015.

The percent decrease may be as a result of Nigeria economic recession during 2016. However, a closer look at the financial report revealed a different cause. The statement of comprehensive income shows a high tax payment of N415645. The year 2015 tax payment for the company was N359,241.

That is not all. The company administrative expenses also increased to a all new high figure. In 2015, it’s administrative expensive was N1,512,518. However, for 2016, the figure almost doubled, that is , N2,176,237.

Foreign exchange rate may have affected it’s cost of sales. The firm cost of sales for 2016 was N7,500,582. The cost of sale for 2015 was N6,119,541.

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ETranzact has the highest Market capitalization in the ICT sector. It’s market capitalization value is N21 billion. The company is also the most active in the Nigerian Stock Exchange among the companies in the ICT industries.

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