MLCF earns profits of Rs 555 mln owing to recovery in retention prices during 1QFY21

October 23, 2020 (MLN): Maple Leaf Cement Factory (MLCF) has posted net profits of Rs 555 million for 1QFY21 against the net loss of Rs 982.3 million reported in the same quarter last year.

The earnings per share of the company clocked in at Rs 0.51, compared to the loss per share of Rs 1.41 in the corresponding quarter last year.

During the quarter, Company’s revenue jumped by 5% YoY despite 11% YoY drop in volumetric sales. The increase in revenues attributed to higher retention prices and cut in FED to Rs 1,500/bag from Rs 2,000/bag, this offset the impact of decline in dispatches

Moreover, the higher retention and 13.83% YoY decline in cost of sales caused gross profits to settle at Rs 1.46 billion against the profits of Rs 119.2 million in the same quarter of a year ago.

Thus, the gross margins of the company improved significantly from 2% to 19%.

On the expense side, the company witnessed 46.7% YoY reduction in financial charges mainly attributable to utilization of right proceeds which reduces its debt level coupled with significant reduction in policy rates, said the report by Insight Securities.

 With regards to taxes, the company booked effective tax rate of 18% against the reversal of Rs 42.5 million in 1QFY20.

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