Power Cement losses expand four times

September 26, 2024 (MLN): Power Cement Limited (PSX: POWER) losses widened by almost four times during the April-June quarter as sales plunged.

The company incurred a net loss of Rs1.52 billion [LPS: Rs1.47] during the quarter as compared to Rs384.43 million [LPS: Rs0.35] in the same period last year (SPLY).

Going by the results, the company's top line slipped 17.4% to Rs6.14bn as compared to Rs7.43bn in SPLY.

The cost of sales fell by 10.9% but was higher than proportionate to sales decline, which worsened the gross profit by 34.6% to Rs1.33bn in Q4 FY24.

The gross margins worsened to 21.7% as compared to 27.4% in SPLY.

During the period under review, other income deflated by 95.7% to stand at Rs6.33m in Q4 FY24 as compared to Rs146.47m in SPLY.

On the expense side, the company's administrative expenses rose 22.1% YoY to Rs113.66m, selling and distribution expenses rose 15.3% YoY to Rs861.12m, and other operating expenses rose YoY to Rs19.69m.

The company’s finance cost went up by 4.9% and stood at Rs1.07bn as compared to Rs1.02bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs837.55m against the Rs423.86m paid in the corresponding period of last year, depicting a rise of 97.6%.

This translates to an effective tax rate of -123.4% as compared to 1075.2% in SPLY.

Amount in thousand except for EPS

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