Power Cement turns profitable in FY23, reports Rs168m profit

October 02, 2023 (MLN): Power Cement Limited (PSX: POWER) has shown significant recovery in fiscal year 2023, reporting a profit of Rs168.99 million compared to the Rs443.95 million loss reported in the same period last year (SPLY), company's filing on the local bourse revealed today.

The Loss Per Share (LPS) stood at Rs0.19, compared to 0.62 LPS in FY22.

Going by the results, the company's top line soared by 65.41% YoY to Rs28.94bn as compared to Rs17.49bn in SPLY.

The cost of sales also went up by 47.02% YoY but was less than proportionate to sales increase, which improved the gross profit by 2.77x YoY to Rs6.87bn in FY23.

On the expense side, the company observed a rise in Distribution expenses by 96.32% YoY and Administrative expenses by 96.32% YoY to clock in at Rs1.9bn and Rs367.11m respectively during the review period.

The company incurred a reversal allowance on trade receivables of Rs8.98m, whereas, in SPLY, a reversal allowance of Rs36.28m was incurred.

POWER's other income section witnessed a major drop as it reported a loss of Rs881.72m in FY23 compared to an income of Rs38m in SPLY.

The company’s finance costs rose by 44.94% YoY and stood at Rs3.83bn as compared to Rs2.64bn in FY22, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs249.9m against the Rs886.68m paid in the corresponding period of last year, depicting a decline of 71.82% YoY.

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