Home Equity Attock Cement witnesses 43% decline in profits in FY22

Attock Cement witnesses 43% decline in profits in FY22

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August 17, 2022 (MLN): Attock Cement Pakistan Limited (ACPL) has announced its FY22 financial result wherein the company reported a profit after tax of Rs1.35 billion (EPS: Rs8.15), depicting a decline of 43% YoY compared to Rs2.38bn (EPS: Rs13.61) in FY21.

The decline in profitability was mainly due to reduced dispatches in FY22.

According to the financial statement sent to PSX, net sales came down by around 2% YoY given a massive dip in volumes, higher coal prices and PKR depreciation. To note, the local sales showed healthy growth, however, the export remained under pressure, down by 62% YoY. They were badly affected owing to the financial crisis in Sri Lanka which is the premier market for the company’s products.

While higher fuel and power costs increased the input costs that eroded the gains achieved through an increase in retention prices and subsequently the gross margins shrank from 22% to 16% in FY22 as the company partially passed on the impact of the cost to the customers due to stiff competition in the local markets.

Notably, the other income of the company during FY22 surged by around 4x YoY to Rs518mn mainly on the back of dividends received from a subsidiary company. Further, the finance costs dropped by 63% to Rs267mn in the said period.

On the tax front, the effective tax rate of the company stood at 47% against 15% in FY21.

 Consolidated Financial Results for the Year ended June 30, 2022 ('000 Rupees)

 

Jun-22

Jun-21

% Change

Revenue from contracts with customers

 28,087,029

 28,601,617

-1.80%

Cost of Sales

 (23,605,526)

 (22,169,442)

6.48%

Gross Profit

 4,481,503

 6,432,175

-30.33%

Distribution cost

 (1,333,827)

 (2,235,568)

-40.34%

Administrative expenses

 (736,663)

 (690,932)

6.62%

Other expenses

 (124,435)

 (114,129)

9.03%

 Other income

 518,288

 136,871

278.67%

 Profit from operations

 2,804,866

 3,528,417

-20.51%

Finance cost

 (266,810)

 (722,911)

-63.09%

Share of net income of associate accounted for using equity method

 6,809

 5,654

20.43%

Profit before income tax

 2,544,865

 2,811,160

-9.47%

Income tax expense

 (1,190,346)

 (432,562)

175.19%

Profit for the year

 1,354,519

 2,378,598

-43.05%

Earnings per share – basic and diluted (Rupees)

 8.15

 13.61

-40.12%

 

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Posted on:2022-08-17T10:38:30+05:00

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