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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)

 

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%

 

Copyright Mettis Link News

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

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