August 13, 2021 (MLN): Maple Leaf Cement Factory Limited (PSX: MLCF) has wrapped the fiscal year 2021 with incredible margins, presented a turnaround in its earnings wherein the company posted net profit worth Rs3.82 billion (EPS: Rs3.49), against losses of Rs3.56bn (LPS: Rs3.89) in the preceding fiscal year.
This splendid turnaround in profitability is mainly attributable to a significant improvement in margins, strong retention prices, lower interest rates, and rising construction activities amid government’s extended incentives to the construction sector.
As per financial statement issued to PSX today, MLCF posted significant increase in its net sales for FY21.The sales volumes of the company clocked in at Rs35.64bn, expanded by 22% compared to same period last year (SPLY).
According to the report by Arif Habib Limited, topline growth arrived at 22% as higher prices counterbalanced the impact of a minor slowdown in dispatches, dipped by 4% YoY to 4,981k tons against 5,202k tons in SPLY.
The company’s gross margins improved incredibly to 24% from 2% in SPLY amid strong retention prices, and volumetric growth and PKR appreciation which offset the impact of augmented coal prices.
On the expense side, distribution, admin, and other costs mounted by 32%, 24%, and 168% YoY respectively, while finance cost declined by 54% YoY owing to the lower interest rates.
During the year, the Other income of the company stood at Rs223mn during FY21, jumped by 53% YoY. The rise in this segment is due to the dividend income of Rs3.5bn from Maple Leaf Power Limited, as per noted by Pearl Securities.
On the taxation front, the company booked effective taxation at 23% during FY21 against a tax credit of Rs375.13mn in SPLY.
| Consolidated Financial Results for the year ended June 30, 2021 (Rupees’000) | |||
|---|---|---|---|
| June’21 | June’20 | % Change | |
| Sales – net | 35,640,181 | 29,117,734 | 22% |
| Cost of sales | (27,039,661) | (28,503,958) | -5% |
| Gross profit | 8,600,520 | 613,776 | 1301% |
| Distribution cost | (1,115,732) | (845,380) | 32% |
| Administrative expense | (979,223) | (791,137) | 24% |
| Other charges | (431,334) | (160,660) | 168% |
| Other income | 223,015 | 145,879 | 53% |
| Finance costs | (1,327,203) | (2,896,971) | -54% |
| Profit/Loss before tax | 4,970,043 | (3,934,493) | – |
| Taxation | (1,141,549) | 375,134 | – |
| Profit/Loss for the year | 3,828,494 | (3,559,359) | – |
| Earnings/Loss per share | 3.49 | (3.89) | – |
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