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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