Attock Cement Pakistan Limited (ACPL) announced its 3QFY21 financial result today, where the company posted a profitability jump of 17% YoY to PKR 414mn (EPS: PKR 3.01) compared to PKR 353mn (EPS: PKR 2.57) in SPLY. This took the 9MFY21 earnings to PKR 959mn (EPS: PKR 6.98), depicting a decline of 14% YoY.
· The company’s topline growth in 3QFY21 arrived 8% YoY to PKR 5.4bn as higher retention prices offset the impact of a decline in offtake (-4% YoY to 748k tons). In 9MFY21, revenue settled at PKR 16.4bn, up by 5% YoY supported by turnaround in retention prices coupled with a 5% YoY improvement in dispatches to 2,558k tons (9MFY20: 2,443k tons).
· Margins of ACPL remained stable in 3QFY21 (23.1% vs. 23.7%). Pertinently, while volumes witnessed a decline (amid 24% dip in exports given amendments in the Sri Lankan FX regime, which diluted the demand of importers), retention prices were supported by cut in FED during the year and improved pricing discipline. On a QoQ basis, margins contracted by 590bps attributable to a 20% dip in offtake (2QFY21: 931k tons) together with higher coal prices. In 9MFY21, gross margins remained unchanged (23.7% vis-à-vis 23.5% in 9MFY20) as lower coal prices and recovery in local retention prices counterbalanced the impact of higher electricity tariff.
· Finance cost came down by 35% YoY to PKR 66mn in 3QFY21 amid cut in interest rate.
· ACPL booked effective taxation at 25% in 3QFY21 vis-à-vis 21% in SPLY.
Courtesy – AHL Research