KARACHI: The profit after tax of Attock Petroleum Limited has increased to Rs. 1.290 billion in the quarter ended September 30, 2012 as compared to Rs. 1.097 billion earned in the corresponding quarter in 2011.

The board of directors of the company in its meeting held on Wednesday declared that the company’s earning per share has increased to Rs. 18.67 in the period under review against Rs. 15.88 in the same quarter last year.

The growth in the earnings primarily stems from increased gross margins and higher other income, Nauman Khan, an analyst at Topline Securities said.

Though company’s volumetric sales depicted a decline in the first quarter of current fiscal year, but higher margins on regulated products like HSD and MS culminated into higher gross margins for the company, he added. During the period, company’s gross margins improved by 2pps to 5 percent while gross profit rose by a significant 47 percent to Rs. 1.8 billion.

In addition, an average 22 percent increase in petroleum product prices is also expected to reflect positively on company’s gross margin leading to inventory gains. The company’s other income rose by 21 percent to Rs. 975 million as against Rs. 809 million primarily on account of higher handling charges and improved cash balance.