Maple Leaf Cement’s Q2 profit drops by 23.5%

February 21, 2024 (MLN): Maple Leaf Cement Factory Limited (PSX: MLCF) revealed its earnings for the second quarter of fiscal year 2024, wherein the profit after tax clocked in at Rs2.24 billion [EPS: Rs2.09].

This marks a decrease from the profit of Rs2.93bn and EPS of Rs2.72 in the same period last year (SPLY), a fall of 23.44% YoY.

Going by the results, the company's top line increased by 4.93% YoY to Rs18.07bn as compared to Rs17.22bn in SPLY.

The cost of sales also rose by 4.76% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 5.24% YoY to Rs6.38bn in 2QFY24.

The gross margins improved slightly to 35.32% as compared to 35.21% in SPLY.

During the review period, other income inflated by 36.07% YoY to stand at Rs70.61m in 2QFY24 as compared to Rs51.89m in SPLY.

On the expense side, the company observed an increase in administrative expenses by 83.20% YoY and other expenses by 15.43% YoY to clock in at Rs576.47m and Rs302.07m respectively during the review period.

Moreover, the net impairment losses on financial assets rose three-fold to Rs90m during the quarter.

The company’s finance costs went up by 75.15% YoY and stood at Rs915.57m as compared to Rs522.72m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs681.54m against the Rs1.16bn paid in the corresponding period of last year, depicting a fall of 41.35% YoY.

Amount in thousand except for EPS

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