MLCF to undertake PKR 18.5 billion worth capacity expansion of brown-field project

February 25, 2021 (MLN): The Board of Directors of Maple Leaf Cement Factory Limited (MLCF) has approved the capacity expansion of a brown-field project by way of installation of Line 4 having capacity up to 8,000 tpd along with Waste Heat Recovery Plant with approximate capital outlay of Rs. 18.5 billion.

The proposed expansion is planned to be financed through internal cash generation and borrowings from financial institutions without issuance of further Right Shares. The expansion would be completed within a period of 18 months from the date of opening the letter of credit.

The Board also announced the financial results for the half year ended December 31, 2020, as per which, the company earned profits of Rs. 1.62 billion (EPS: 1.48), as opposed to the losses of Rs. 1.76 billion (LPS: 2.42) recorded during the same period of last year.

The turnaround in earnings can be accredited to strong growth in gross margins, which was a result of lower coal prices, as well as an improvement in retention prices that helped in mitigating the impact of lower dispatches during the period.

The company also recorded a 55.48% decline in finance cost due to lower interest rates and utilization of proceeds from the right issue which helped in lowering the overall debt level of MLCF.

Financial Results for the half year ended December 31, 2020 ('000 Rupees)

 

Dec-20

Dec-19

% Change

Sales – net

16,620,799

16,182,293

2.71%

Cost of Sales

(12,936,832)

(15,564,141)

-16.88%

Gross profit

3,683,967

618,152

495.96%

Distribution cost

(400,735)

(454,598)

-11.85%

Administrative expenses

(433,748)

(392,167)

10.60%

Other charges

(162,470)

(67,806)

139.61%

Other income

114,489

99,474

15.09%

Profit from operations

2,801,503

(196,945)

Finance cost

(743,255)

(1,669,372)

-55.48%

Profit before taxation

2,058,248

(1,866,317)

Taxation

(432,799)

99,233

Profit after taxation

1,625,449

(1,767,084)

Basic and diluted earnings per share (Rupees)

1.48

(2.42)

 

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Posted on: 2021-02-25T13:16:00+05:00

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