April 22, 2022 (MLN): Attock Cement Pakistan Limited (ACPL) witnessed a 37% YoY decline in its consolidated net profits to Rs1.25 billion (EPS: Rs7.88) during the nine months ended March 31, 2021, against the net profit of Rs1.99bn (EPS: Rs11.51) earned in the same period last fiscal year.
This drop in profitability was mainly due to the decline in offtake which translated to a revenue dip of 4.3% YoY.
Meanwhile, PKR depreciation, augmented coal prices, and higher electricity tariffs also put pressure on margins which nosedived from 26% to 18% during 9MFY22 despite higher retention prices.
However, a reduction in distribution expenses by 33% YoY due to decline in exports, admin costs by 18% YoY and financial charges by 67.4% YoY, provided some cushion to the net income of the company.
Notably, the other positive highlight is a 5.3x YoY increase in other income to Rs337.4mn during the period under review.
On the taxation front, the effective tax rate of the company for the period stands at 36% compared to 17% in the corresponding period last year.
|
Consolidated Financial Results for the nine months ended March 31, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Revenue |
21,187,166 |
22,137,583 |
-4.29% |
|
Cost of Sales |
(17,348,378) |
(16,418,255) |
5.67% |
|
Gross Profit |
3,838,788 |
5,719,328 |
-32.88% |
|
Distribution cost |
(1,299,225) |
(1,941,255) |
-33.07% |
|
Administrative expenses |
(618,229) |
(753,767) |
-17.98% |
|
Other expenses |
(109,000) |
(86,000) |
26.74% |
|
Other income |
337,429 |
62,884 |
436.59% |
|
Profit from operations |
2,149,763 |
3,001,190 |
-28.37% |
|
Finance cost |
(190,775) |
(585,314) |
-67.41% |
|
Share of net income of associate accounted for using the equity method |
2,820 |
2,985 |
-5.53% |
|
Profit before income tax |
1,961,808 |
2,418,861 |
-18.90% |
|
Income tax credit/(expense) |
(708,000) |
(422,000) |
67.77% |
|
Profit for the year |
1,253,808 |
1,996,861 |
-37.21% |
|
Earnings per share – basic and diluted (Rupees) |
7.88 |
11.51 |
-31.54% |
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