September 11, 2020 (MLN): The Board of Directors of Maple Leaf Cement Company (MLCF) has approved investment of upto Rs. 200 million as loans / advances to Kohinoor Textile Mills Limited (KTML), a holding company of MLCF, to meet the working capital requirements of KTML.
A similar nature of reciprocal facility of loans / advances of Rs. 1,500 million for working capital requirements of the company would be recommended by the Board of KTML, subject to the approval of shareholders.
MLCF also announced the consolidated financial results for the year ended June 30, 2020, which showed losses of Rs. 3.5 billion (LPS: 3.89) as compared to the earnings of Rs. 2.46 billion (EPS: 3.57) made last year.
The topline income showed a growth of 12% due to growth in volumetric sale during the year. On the other hand, the cost of sales surged by 43.1% on the back of higher fuel and power expense and lower retention price.
The finance cost depicted a growth of 1.35x owing to increase in the policy rate as well as excessive borrowings.
The losses can also be attributed to the closure of the plant during the lockdown period, which resulted in a lower number of operational days.
| Consolidated Financial Results for the year ended June 30, 2020 (Rupees'000) | |||
|---|---|---|---|
| Jun-20 | Jun-19 | % Change | |
| Sales – net | 29,117,734.00 | 26,005,944.00 | 12% |
| Cost of sales | (28,532,280.00) | (19,944,348.00) | 43% |
| Gross profit | 585,454.00 | 6,061,596.00 | -90% |
| Distribution cost | (817,058.00) | (933,244.00) | -12% |
| Administrative expense | (791,137.00) | (741,081.00) | 7% |
| Other charges | (160,660.00) | (548,748.00) | -71% |
| Other income | 145,879.00 | 51,626.00 | 183% |
| Finance costs | (2,896,971.00) | (1,231,011.00) | 135% |
| (Loss) / Profit before tax | (3,934,493.00) | 2,659,138.00 | |
| Taxation | 375,134.00 | (198,877.00) | |
| (Loss) / Profit for the year | (3,559,359.00) | 2,460,261.00 | |
| (Loss) / Earnings per share | (3.89) | 3.57 | |
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