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

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.

Financial Results for the half-year ended December 31st, 2021 ('000 Rupees)




% Change

Revenue from contracts with customers




Cost of Sales




Gross Profit




Distribution costs




Administrative expenses




Other expenses




 Other income




 Profit from operations




Finance cost




Share of net income of associate accounted for using equity method




Profit before income tax




Income expenses




Profit for the period




Earnings per share – basic and diluted (Rupees)





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Posted on: 2022-02-07T10:31:39+05:00


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