Attock Cement’s profitability weakens by 40% in 1HFY22

February 07, 2022 (MLN): Attock Cement Pakistan Limited (ACPL) witnessed a 40.37% YoY decline in its consolidated net profits that stood at Rs742 million (EPS: Rs4.69) during the first half-year ended December 31, 2021, against the net profit of Rs1.24bn (EPS: Rs7.02) 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 13% YoY.

Meanwhile, PKR depreciation, augmented coal prices, and higher electricity tariffs also put pressure on margins that plunged from 27% to 18% during 1HFY22.

However, reduction in distribution expenses by 42% YoY amid a 56% cut in exports as well as a 77% decline in finance costs given some of the company’s borrowing cost is being capitalized on the back of its expansion, provided some cushion to net income of the company, a research note by Arif Habib Limited said.

Notably, the other positive highlight is a 5-fold increase in other income to stand at Rs266mn during the period under review.

On the taxation front, the company paid taxes worth Rs454mn during 1HFY22, up by 58% YoY, restricting its bottom line.

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