MLCF reports losses worth Rs 2.72 billion

April 24, 2020 (MLN): Maple Leaf Cement Factory (MLCF) has announced nine months financial results today in which the company has reported net losses worth Rs 2.72 billion with a loss per share stood at Rs 3.20, compared to the profits of Rs 1.89 billion with earning per share at Rs 2.75 in the corresponding period of last year.

During the period under review, the Company recorded net revenues of Rs. 23 billion against Rs. 18.53 billion in the corresponding period last year; mainly driven by growth in local dispatches.

Despite a stunning growth in local dispatches, topline increased by only 24%; mainly due to reduced domestic retention prices amid intense competition in the local market leading to higher discounts.

Furthermore, gross profit margin of the company also fell from 26% to 3% owing to lower retention prices and depreciation expense of the new plant.

Further injury has occurred through higher finance costs which rose from Rs 765.2 million to Rs 2.72 billion on account of recent expansion and higher short-term borrowing requirements amid a peaked interest rate scenario.

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