October 29, 2020 (MLN): Pioneer Cement Company Limited (PIOC) has managed to shrink its losses for 1QFY21 by 79% YoY to Rs39.5 million from Rs 185.4 million incurred in the same quarter of last year.
The loss per share of the company also reduced by the same percent from Rs 0.82 to Rs 0.17 per share.
The company was able to reduce its losses mainly on the back of 92% YoY increase in local cement dispatches, and better cement retention prices (North prices increased by 5% YoY).
According to the report by BMA Capital, during the quarter under study, PIOC’s overall volume increased by 92% YoY to 0.7 million tons compared to 0.3 million tons in 1QFY20. The increase was driven by the surge in both local and export dispatches which increased by 93% and 12% YoY respectively. As a result, net sales increased by 113% YoY to Rs 4 billion that took gross profit to Rs 307 million, up by 809% YoY.
The gross margins of the company increased by 6ppts YoY to 8% mainly on account of higher cement dispatches and improved prices. On the other hand, Distribution and Admin expense declined by 20.8% YoY and 3% YoY respectively. Meanwhile, Finance cost increased significantly to Rs 429 million, up by 361.8% YoY due to the commencement of the new line, the report stated.
|
Financial Results for the Quarter ended September 30, 2020 ('000 Rupees) |
|||
|
|
Sep-20 |
Sep-19 |
% change |
|
Sales – net |
3,992,295 |
1,871,035 |
113.37% |
|
Cost of sales |
(3,685,598) |
(1,837,312) |
100.60% |
|
Gross profit |
306,697 |
33,723 |
809.46% |
|
Distribution cost |
(35,077) |
(44,311) |
-20.84% |
|
Administrative expenses |
(29,054) |
(29,931) |
-2.93% |
|
Other income |
120,827 |
11,861 |
918.69% |
|
Other expenses |
– |
(35,452) |
-100.00% |
|
|
56,696 |
(97,833) |
-157.95% |
|
Operating profit |
363,393 |
(64,110) |
|
|
Finance cost |
(429,419) |
(92,971) |
361.88% |
|
Profilt before taxation |
(66,026) |
(157,081) |
-57.97% |
|
Taxation |
26,449 |
(28,328) |
|
|
Profit after taxation |
(39,577) |
(185,409) |
-78.65% |
|
Loss/ Earnings per share – basic and diluted (Rs.) |
(0.17) |
(0.82) |
-79.27% |
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