April 25, 2025 (MLN): Power Cement Limited (PSX: POWER) has posted a net profit of Rs347.9 million for the nine months ended March 31, 2025, marking a significant recovery from the net loss of Rs1.19 billion reported in the same period last year.
The company’s earnings per share (EPS) rose to Rs0.07 from a loss of Rs1.41 per share, reflecting a strong turnaround in its bottom-line performance.
Revenue from contracts with customers for the nine-month period stood at Rs21bn, reflecting a 15.78% decline from Rs24.94bn recorded during the corresponding period of the previous year.
Despite the fall in revenue, the company managed to reduce its cost of sales by 21.74%, bringing it down to Rs15.21bn, compared to Rs19.43bn last year.
This led to a 5.25% increase in gross profit, which rose to Rs5.8bn.
Selling and distribution expenses declined by 15.69% to Rs1.99bn, down from Rs2.36bn, aided by cost-cutting initiatives.
On the other hand, administrative expenses increased by 31.98%, reaching Rs433.5m, mainly due to higher operational costs.
The company also recorded an impairment loss on trade receivables of Rs12m, while other expenses dropped sharply by 51.40% to Rs84.9m.
Total operating expenses were curtailed by 11.99%, supporting an increase in profit from operations, which stood at Rs3.28bn, up 23.97% from Rs2.64bn in the same period last year.
Finance income grew by 41.40% to Rs29.8m, while finance costs saw a substantial decrease of 34.85%, amounting to Rs2.54bn, reflecting better debt management and lower borrowing costs.
The levy dropped by 40.26% to Rs63.8m, and taxation expenses turned negative, with a charge of Rs350.6m this period compared to a tax credit of Rs159.9m last year.
As a result, net profit after taxation and levy came in at Rs347.9m, compared to a net loss of Rs1.19bn in the same period last year.
Total comprehensive income for the period remained at Rs347.9m, mirroring the post-tax profit figure.
The company’s basic EPS excluding preference dividend stood at Rs0.30, compared to a loss per share of Rs1.07 last year, further underlining the improved financial performance.
| Financial Results for the Nine Months Ended March 31, 2025 (Rupees in '000) | |||
| Description | Mar-25 | Mar-24 | %Change |
| Revenue from contracts with customers | 21,004,306 | 24,939,287 | -15.78% |
| Cost of sales | (15,205,451) | (19,429,863) | -21.74% |
| Gross profit | 5,798,855 | 5,509,424 | 5.25% |
| Selling and distribution expenses | (1,993,243) | (2,364,296) | -15.69% |
| Administrative expenses | (433,456) | (328,420) | 31.98% |
| Impairment loss on trade receivables | (12,021) | – | |
| Other (expense) / income | (84,885) | (174,666) | -51.40% |
| Total Expenses | (2,523,605) | (2,867,382) | -11.99% |
| Profit from operations | 3,275,250 | 2,642,042 | 23.97% |
| Finance income | 29,811 | 21,082 | 41.40% |
| Finance cost | (2,542,805) | (3,903,216) | -34.85% |
| Profit / (loss) before taxation and levy | 762,256 | 1,240,092 | -38.53% |
| Levy | (63,756) | (106,720) | -40.26% |
| Taxation | (350,573) | 159,901 | |
| Profit / (loss) after taxation and levy | 347,927 | (1,186,911) | |
| Other comprehensive income / (loss): | |||
| Changes in fair value of cash flow hedges | (834,390) | (953,192) | -12.46% |
| Adjustments transferred to profit or loss | 834,390 | 953,192 | -12.46% |
| Hedging Reserve | – | – | |
| Total comprehensive income / (loss) | 347,927 | (1,186,911) | |
| Earnings / (loss) per share – Basic | 0.07 | (1.41) | |
| Earnings / (loss) per share – Basic (Excl. Preference Dividend) | 0.3 | (1.07) | |
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Posted on: 2025-04-25T09:19:36+05:00
