PIOC witnesses a turnaround in financial performance owing to presence of tax credit

February 25, 2021 (MLN): Pioneer Cement Limited (PIOC) has reported profits of Rs. 606.5 million (EPS: 2.67) for the half-year ended December 31, 2020, against losses of Rs. 111.6 million (LPS: 0.49) reported during the same period of last year.

The improvement in the company’s financial performance was a result of the tax credit of Rs. 261.1 million on the new credit line, as per a report by Insight Securities.

The company also saw a 106% growth in its total revenue owing to higher retention prices as well as increase in dispatches.

Despite lower interest rates, the company saw a 3.6x growth in finance costs owing to the expenditure incurred on PIOC’s expansion project.

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

 

Dec-20

Dec-19

% change

 Sales gross

   

Cement – Local

 14,221,071

 6,858,768

107.34%

Cement – Export

 51,692

 47,146

9.64%

 

 14,272,763

 6,905,914

106.67%

Less:

   

Sales Tax

 (2,410,566)

 (1,173,269)

105.46%

Federal Excise duty

 (2,365,493)

 (1,514,602)

56.18%

Commission

 (108,370)

 (39,558)

173.95%

Discount and rebate

 (17,726)

 (30,758)

-42.37%

 

 (4,902,155)

 (2,758,187)

77.73%

Sales – net

           9,370,608

        4,147,727

125.92%

Cost of sales

         (8,231,424)

      (4,102,710)

100.63%

Gross profit

 1,139,184

 45,017

2430.56%

Distribution cost

              (67,911)

         (161,627)

-57.98%

Administrative expenses

 (59,892)

 (57,251)

4.61%

Other income

              (25,599)

 (204)

12448.53%

Other expenses

              198,304

           160,990

23.18%

 

 44,902

 (58,092)

 

Operating profit

 1,184,086

 (13,075)

 

Finance cost

 (838,684)

 (182,261)

360.16%

Profit before taxation

              345,402

         (195,336)

 

Taxation

 261,109

 83,668

212.08%

Profit after taxation

 606,511

 (111,668)

 

Earnings per share – basic and diluted (Rs.)

                            2.67

                      (0.49)

 

 

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Posted on: 2021-02-25T14:51:00+05:00

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