Strong bottom-line growth on higher revenues:  In our today’s morning briefing we would discuss the performance of Attock Cement Pakistan Limited (ACPL) and would recommend the investors on the scrip.

PAT climbs 18% YoY: On back of increased local cement prices, slightly better volumetric sales, and lower coal prices, the cumulative profit after taxation (PAT) of the company totaled Rs 1,025 million (EPS: Rs 8.95) in 1HFY15 resulting in a 18% YoY growth when compared to a PAT of Rs 871 million (EPS: Rs 7.61) in 1HFY14. The bottom-line was also boosted by hike in other income. On QoQ basis also the company posted decent growth in earning where the PAT of the company totaled Rs 554 million (EPS: Rs 4.84) in 2QFY15 which is 18% QoQ up as against a PAT of Rs 470 million (EPS: Rs 4.11) in 1QFY15. The QoQ growth in earning is also primarily attributed to higher hpw revenues and lower coal prices.

Better prices and volumes push sales : With the support of 6% hike in local cement prices and 1% increase in sales volume, the net revenue of the company totaled Rs 6,369 million in 1HFY15 increasing by 7% YoY when compared to a net revenue of Rs 5,967 million in the identical period in FY14. On the other side the cost of sales witnessed limited surge owing to lower coal prices. The cost of sales reached Rs 4,372 million in 1HFY15 which is 2% YoY up from Rs 4,276 million in 1HFY14. Therefore the gross profit of the company jumped by 18% YoY during the period under review to Rs 1,997 million versus Rs 1,691 million in 1HFY14. The gross profit margin went up to 31.4% in 1HFY15 versus 28.3% in 1HFY14.

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