Attock Cement Company limited (ACPL) witnessed 11% growth in bottom-line as company posted earnings of Rs 470 million (EPS: Rs 4.11) in 1QFY15 compared to against Rs 423 million (EPS: Rs 3.69) in 1QFY14 owing to rise in retention prices, better volumetric sales
and surge in other income. However, earnings drop by 22% QoQ to Rs 470 million (EPS: Rs 4.11) against Rs 606 million (EPS: Rs 5.29) during 4QFY14 mainly due to lower volumetric sales and slightly higher effective taxation.


Higher revenue – the key factor
Net sales of the company hike by 9% to Rs 3.17 billion in 1QFY15 compared to Rs 2.92 billion owing to higher retention prices and marginal 1% rise in volumetric sales. Retention prices increased by Rs 6,942/ton versus Rs 6,382/ton in 1QFY14 owing to better cement prices. Volumetric sales surge by 1% to 457k tons in 1QFY15 against 452k tons witnessed in 1QFY14. Local dispatches went down by 13% to 255k tons in 1QFY15 versus 291k tons in 1QFY14 hpw due to more focus on exports. While export notably up by 27% to 203k tons in 1QFY15 compared to 160k tons in 1QFY14 due to better demand from Africa and Sri Lanka. On the other hand, production down by 2% due to major BRM in cement mill during July’14 which reduces capacity utilization at 104% against 106% in 1QFY14.
Double digit growth in gross profit
Gross profit of the company showed growth of 10% at Rs 942 million against Rs 855 million in 1QFY14 mainly due to lower coal prices and higher cement prices. Cost of sales too inched up by 8% to Rs 2.23 billion against Rs 2.06 billion in 1QFY14 due to higher power tariff rates and increase in plant maintenance cost. Gross margin increased to 29.7% from 29.3% in 1QFY14. EBITDA per ton surged by 9% to Rs 1,541/ton versus Rs 1,416/ton in 1QFY14.

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Azee Research