February 23, 2022 (MLN): Maple Leaf Cement Factory Limited (MLCF) announced its 1HFY22 financial result today wherein the company posted consolidated profit after tax (PAT) of Rs2.76 billion (EPS: Rs2.51), inflating by a whopping 69.6% YoY when compared to Rs1.63bn (EPS: Rs1.48) in 1HFY21.
The rise in earnings is attributed to higher retention prices that counterbalanced the impact of a slowdown in dispatches.
Going by the financial statement, the company’s top line registered a growth of around 33% to Rs22bn when compared to the same period last year amid strong retention prices which offset the impact of a volumetric decline, augmented coal prices and PKR depreciation. With the company using a mix of pet-coke, imported and Afghani coal, the gross margins clocked in at 27%, up by 6ppt during the said period.
On the costs front, MLCF’s operating expenses swelled by 79% YoY to Rs1.71bn mainly on the back of 92% increase in the major expense head i.e., distribution cost and other charges that surged by 3x YoY.
Notably, the non-operating income of the company massively declined by 63%YoY to Rs42mn, restricting the bottom-line growth.
Meanwhile, the finance costs of MLCF inched down by only 9% YoY to Rs676mn in 1HFY22 owed to lower interest rates. However, the central bank increased interest rates in the second quarter of the ongoing fiscal year on the back of growing inflation.
On the tax front, the effective tax rate stood at 26% in 1HFY22 as opposed to 21% in SPLY.
|
Consolidated Financial Results for the half-year ended December 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Sales – net |
22,101,091 |
16,577,810 |
33.32% |
|
Cost of Sales |
(16,025,291) |
(12,936,832) |
23.87% |
|
Gross profit |
6,075,800 |
3,640,978 |
66.87% |
|
Distribution cost |
(759,313) |
(395,989) |
91.75% |
|
Administrative expenses |
(448,706) |
(395,505) |
13.45% |
|
Other charges |
(501,771) |
(162,470) |
208.84% |
|
Operating cost |
(1,709,790) |
(953,964) |
79.23% |
|
Other income |
42,071 |
114,489 |
-63.25% |
|
Profit from operations |
4,408,081 |
2,801,503 |
57.35% |
|
Finance cost |
(676,240) |
(743,255) |
-9.02% |
|
Profit before taxation |
3,731,841 |
2,058,248 |
81.31% |
|
Taxation |
(974,411) |
(432,799) |
125.14% |
|
Profit after taxation |
2,757,430 |
1,625,449 |
69.64% |
|
Basic and diluted earnings per share (Rupees) |
2.51 |
1.48 |
69.59% |
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