As majority of the liquid cement companies have announced its results, so we are analyzing financials of 1HFY15 in which we include 9 listed companies. Our sample companies represent 90% of sector market capitalization.
Earnings surge by 14% in 1HFY15
Earning momentum of the top listed companies continued in 1HFY15 as companies profit after taxation surged by 14% at Rs 16.70 billion in 1HFY15 compared to Rs 14.62 billion in 1HFY14 mainly due to better earnings form mostly all companies. The growth is primarily on account of 5% higher local cement prices resulted into 3% hike in retention prices, surge in volumetric sales by 6%, lower financing cost and higher other income during the period.
QoQ even remain impressive
In 2QFY15 alone, earnings notably up by 42% to Rs 9.79 billion versus Rs 6.91 billion in 1QFY15 due to better margin on account lower coal prices and rise in cement dispatches along with lower effective taxation of 22% in 2QFY15 versus 26% in 1QFY15. Operating profit surged by 28.5% QoQ to Rs 13.01 billon in 2QFY15 versus Rs 10.11 billon in 1QFY15.