Attock Cement Ltd apprise 30.07% reduction in quarterly profits

October 12, 2018 (MLN): Attock Cement Pakistan Limited has reported a 30.07% decline in its consolidated profits for the quarter ended September 30th 2018, mainly due to surging cost of production, distribution costs and finance costs.

The meeting of Board of Directors took place earlier today where they reviewed the company’s financial statement for the quarter and drew a comparison with the earnings made during the same period last year.

As per the financial statement issued to the PSX, the company’s revenue for the quarter jumped from Rs. 3.5 billion in 2017 to Rs. 5.8 billion in 2018, exhibiting a growth of 62.56%.

However, an almost equal increase in cost of production by Rs. 2.1 billion (88.86%) led to an increase in the gross profit margin by only 11.24%.

The distribution cost played a meaty role in bringing down the company’s profits as it increased from Rs. 284 million in 2017 to Rs. 626 million in 2018, displaying a growth of 120.29%.

The reduction in non-core expenses by 28.25% combined with 461.5% increase in non-core income failed to prevent the company from incurring after tax losses.

Unfortunately, since finance cost leapt up by 1062%, increasing from Rs. 10 million in 2017 to Rs. 122 million in 2018, the company stomached lower profits.  

Attock Cement Pakistan recorded a 30.11% drop in basic and diluted earnings per shares, from Rs.5.28 per share to Rs.3.69 per share.

Consolidated Profit and Loss Account for the Quarter Ended September 30th 2018 (Rupees in '000)

 

Sept. 30, 2018

Sept. 30, 2017

% Change

Revenue

5,836,358

3,590,353

62.56%

Cost of sales

-4,482,943

-2,373,693

88.86%

Gross profit

1,353,415

1,216,660

11.24%

Distribution costs

-626,651

-284,469

120.29%

Administrative expenses

-129,389

-107,616

20.23%

Other expenses

-25,000

-35,000

-28.57%

Other income

61,333

10,923

461.50%

Profit from operations

633,708

800,498

-20.84%

Finance cost

-122,660

-10,556

1061.99%

Profit before income tax

511,048

789,942

-35.31%

Income tax

-88000

-185000

-52.43%

Profit for the quarter

423,048

604,942

-30.07%

Basic and diluted earnings per share

3.69

5.28

-30.11%

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Posted on: 2018-10-12T17:04:00+05:00

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