Pioneer Cement profit rises 9.6% in Q3 amid lower finance costs

October 29, 2024 (MLN): Pioneer Cement Limited (PSX: PIOC) experienced a rise of 9.6% YoY in its third quarter bottom line, earning a profit after tax of Rs1.02 billion [EPS: Rs4.5], compared to Rs933.02m [EPS: Rs4.11] in the same period last year (SPLY).

The company achieved this positive financial outcome due to a substantial reduction in finance costs amid monetary easing.

The finance cost decreased by 48.1% and stood at Rs493.16m as compared to Rs950.19m in SPLY.

According to the results, PIOC experienced a setback as its revenue from contracts with customers decreased by 9.4% to Rs7.89bn, compared to Rs8.71bn in the SPLY.

While the cost of sales also declined by 9.4%, the drop in revenue was of greater magnitude, resulting in a 9.4% decrease in gross profit to Rs2.4bn in Q3 CY24.

On the expense side, the company's administration expenses rose 72.5% YoY to Rs137.07m, and other operating expenses increased 33.6% YoY to Rs105.57m.

Meanwhile, distribution and selling expenses fell 33.6% YoY to Rs40.8m

During the period under review, other income grew 652.6% to stand at Rs52.58m in Q3 CY24 as compared to Rs6.99m in SPLY, another factor supporting its profit growth.

On the tax front, the company paid a higher tax worth Rs653.96m against the Rs601.56m paid in the corresponding period of last year, depicting an increase of 8.7%.

Amount in thousand except for EPS

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