August 11, 2021 (MLN): Attock Cement Pakistan Limited (ACPL), has posted a 7% YoY decline in net profits to Rs2.38 billion for FY21 as opposed to the profits of Rs2.56bn in the previous fiscal year.
The earnings per share of the company also exhibited a decline from Rs14.43 to Rs13.61.
The YoY decline in profitability is attributable to depressed gross level performance where the main culprits were higher coal prices and the inability to timely pass on the coal price hike’s impact by players in the Southern region.
During the year, the company’s topline growth arrived at 19.4% YoY to Rs28.6bn supported by a turnaround in retention prices coupled with a 12% YoY improvement in dispatches to 3,276k tons compared to 2,924k tons in FY21. The gross margins of ACPL dipped by 2ppts YoY to 22% in FY21 as higher coal prices and electricity tariff counterbalanced the impact recovery in local retention prices as well as PKR appreciation, a report by Arif Habib cited.
With regards to ACPL’s major expense heads, its Admin cost soared by 27.4%, while its distribution cost swelled by 21.47% YoY, mainly attributable to a rise in dispatches and increase export volumes during the period. Moreover, Financial charges increased by 37.3% YoY to Rs722.9mn.
The company booked effective taxation at 15% compared to 14% in FY20.
|
Consolidated Financial Results for the Year ended June 30, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
Jun-21 |
Jun-20 |
% Change |
|
|
Revenue |
28,601,617 |
23,948,118 |
19.43% |
|
Cost of Sales |
(22,169,442) |
(18,107,543) |
22.43% |
|
Gross Profit |
6,432,175 |
5,840,575 |
10.13% |
|
Distribution cost |
(2,235,568) |
(1,840,494) |
21.47% |
|
Administrative expenses |
(690,932) |
(542,149) |
27.44% |
|
Other expenses |
(114,129) |
(92,274) |
23.68% |
|
Other income |
136,871 |
146,878 |
-6.81% |
|
Profit from operations |
3,528,417 |
3,512,536 |
0.45% |
|
Finance cost |
(722,911) |
(526,358) |
37.34% |
|
Share of net income of associate accounted for using equity method |
5,654 |
5,923 |
-4.54% |
|
Profit before income tax |
2,811,160 |
2,992,101 |
-6.05% |
|
Income tax credit/(expense) |
(432,562) |
(425,000) |
1.78% |
|
Profit for the year |
2,378,598 |
2,567,101 |
-7.34% |
|
Earnings per share – basic and diluted (Rupees) |
13.61 |
14.43 |
-5.68% |
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