April 20, 2022 (MLN): Maple Leaf Cement Factory Limited (MLCF) has announced its 9MFY22 result whereby its consolidated profits stood at Rs4.3bn with an EPS of Rs3.93, showing significant growth of 52% YoY when compared to Rs2.85bn recorded in the same period last year
The increase in profitability is a result of higher retention prices.
Pursuant to the financial statement of the company, the top line witnessed an upsurge of 31% YoY mainly due to improvement in selling prices in the local market amid high inflationary impact on the cost side, especially fuel and power.
Resultantly, the gross margins of the company expanded by 3ppt to 27% on improved retention prices along with the recently added 9.3MW Waste Heat Recovery Plant.
On the cost side, MLCF’s major expense head i.e., distribution cost swelled by 55% YoY to Rs1.15bn while administrative expenses and other charges surged by 10.5% and 1.22 times YoY, respectively.
Meanwhile, the other income saw a massive decline of 84.7% YoY, which might be due to the absence of dividend income from subsidiary Maple Leaf Power Ltd, a research note by Sherman Securities said.
On the other hand, the finance cost of the company inched up by 10% to Rs1.15bn owing to higher interest rates and increased borrowings.
On the tax front, the effective tax rate during 9MFY22 was 25% compared to 22% in the same period last year.
|
Consolidated Financial Results for the Nine months ended March 31, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Sales – net |
34,091,314 |
26,035,285 |
30.94% |
|
Cost of goods sold |
(24,729,300) |
(19,875,519) |
24.42% |
|
Gross profit |
9,362,014 |
6,159,766 |
51.99% |
|
Distribution cost |
(1,147,546) |
(738,694) |
55.35% |
|
Administrative expenses |
(676,136) |
(612,102) |
10.46% |
|
Other charges |
(625,107) |
(281,126) |
122.36% |
|
|
(2,448,789) |
(1,631,922) |
50.06% |
|
Other income |
26,364 |
172,260 |
-84.70% |
|
Profit from operations |
6,939,589 |
4,700,104 |
47.65% |
|
Finance cost |
(1,150,049) |
(1,046,895) |
9.85% |
|
Profit before taxation |
5,789,540 |
3,653,209 |
58.48% |
|
Taxation |
(1,468,848) |
(804,586) |
82.56% |
|
Profit after taxation |
4,320,692 |
2,848,623 |
51.68% |
|
Basic and diluted earnings per share (Rupees) |
3.93 |
2.59 |
51.74% |
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