Pioneer Cement’s profit beats estimate buoyed by strong margins

MG News | September 18, 2024 at 11:48 AM GMT+05:00

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September 18, 2024 (MLN): Pioneer Cement Limited (PSX: PIOC) posted a profit after tax of Rs1.35 billion [EPS: Rs5.94] in the quarter ending June 2024 and announced a final cash dividend of Rs10 per share.

That compares with industry expectations of Rs5.40 per share and a loss per share of Rs0.44 incurred in the same period last year (SPLY).

The strong performance was led by an increase in gross margins and a significantly lower tax rate.

Going by the results, the company's revenue fell 2.7% to Rs8.14bn as compared to Rs8.37bn in SPLY.

However, the cost of sales decreased by 14.3%, improving the gross profit by 29.3% to Rs2.88bn in Q4 FY24.

The gross margins rose to 35.4% as compared to 26.6% in SPLY.

Other income rose to Rs261.72m in Q4 FY24 as compared to just Rs8.3m in SPLY.

On the expense side, the company's administrative expenses rose 87.2% from a year ago to Rs94.02m, while selling and distribution expenses fell 44.3% to Rs26.81m.

The company’s finance cost inched lower by 2.3% and stood at Rs550.01m as compared to Rs562.66m in SPLY.

On the tax front, the company paid a significantly lower tax worth Rs759.58m against the Rs1.84bn paid in the corresponding period of last year, depicting a decrease of 58.6%.

This translates to an effective tax rate of 36.0% as compared to 105.8% in SPLY.

Unconsolidated (un-audited) Financial Results for quarter ended June 30, 2024 (Rupees in '000)
	Jun 24	Jun 23	% Change
Sales	8,144,344	8,369,202	-2.69%
Cost of sales	(5,263,680)	(6,141,614)	-14.29%
Gross Profit/ (loss)	2,880,664	2,227,588	29.32%
Administrative Expenses	(94,023)	(50,229)	87.19%
Selling And Distribution Expenses	(26,805)	(48,082)	-44.25%
Other Gains / (Losses)	(190,254)	(66,182)	187.47%
Provision Reversed / (Charged)	(47,879)	-	-
Other Income	261,716	8,295	3055.11%
Other Operating Expenses	(125,760)	226,489	-
Finance Cost	(550,011)	(562,657)	-2.25%
Profit/ (loss) before taxation	2,107,648	1,735,222	21.46%
Taxation	(759,579)	(1,835,346)	-58.61%
Net profit/ (loss) for the period	1,348,069	(100,124)	-
Basic earnings/ (loss) per share	5.94	(0.44)	-

Amount in thousand except for EPS

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