In our today’s morning report, we have presented the financial result of Maple Leaf Cement Company (MLCF) for the 1HFY15 in detail.
Earnings down by 3% in 1HFY15
MLCF has posted profit after taxation of Rs 1,434 million (EPS: Rs 2.72) as compared to Rs 1,482 million (EPS: Rs 2.81) during 1HFY14 due to higher effective taxation of 26% in 1HFY15 due to imposition of Alternative Corporate Tax (ACT). However, higher retention prices and lower financing cost provided support to bottom-line.
Robust growth of 63% QoQ seen
In 2QFY15 alone company witnessed 63% rise in earnings to Rs 888 million (EPS: Rs1.68) in 2QFY15 as compared to a PAT of Rs 545 million (EPS: Rs 1.03) in 1QFY15. The main explanation likely behind this mega increase is higher volume which up by 14% QoQ and lower financing cost. Company also announces cash dividend of Rs 1/share after fulfilling the covenant of debt repayment.
Net sales swell by 9%
Net sales of the company increase by 9.4% to Rs 9.67 billion in 1HFY15 versus Rs 8.84 billion in 1HFY14 mainly attributed to higher domestic cement prices and better dispatches. Volumetric sales surge by 16% to 1.39 million tons against 1.20 million tons in 1HFY14 mainly due to higher domestic sales of 14.1% at 1090k tons in 1HFY15 versus 956k tons in 1HFY14. This growth can be attributed to acceleration in private sector construction activities and partial materialization of PSDP. Export volumes and prices however, remained stagnant due to lackluster demand from overseas and lower volumes to Afghanistan owing to higher competition from Iranian cement.
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