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

MG News | February 07, 2022 at 10:31 AM GMT+05:00

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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.

Financial Results for the half-year ended December 31st, 2021 ('000 Rupees)
	Dec-21	Dec-20	% Change
Revenue from contracts with customers	13,129,809	15,089,486	-12.99%
Cost of Sales	(10,753,924)	(11,011,079)	-2.34%
Gross Profit	2,375,885	4,078,407	-41.74%
Distribution costs	(843,266)	(1,455,792)	-42.08%
Administrative expenses	(408,899)	(540,209)	-24.31%
Other expenses	(68,000)	(52,000)	30.77%
Other income	265,976	49,685	435.32%
Profit from operations	1,321,696	2,080,091	-36.46%
Finance cost	(128,366)	(551,566)	-76.73%
Share of net income of associate accounted for using equity method	2,820	2,985	-5.53%
Profit before income tax	1,196,150	1,531,510	-21.90%
Income expenses	(454,000)	(287,000)	58.19%
Profit for the period	742,150	1,244,510	-40.37%
Earnings per share - basic and diluted (Rupees)	4.69	7.02	-33.19%

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