Maple Leaf Cement reports consolidated PAT of PKR 1,563mn 3QFY22 today

Maple Leaf Cement Factory Limited (MLCF) announced the financial result for 3QFY22 today, posting a consolidated Profit after Tax (PAT) of PKR 1,563mn (EPS: PKR 1.42) compared to PKR 1,223mn (EPS: PKR 1.11) in SPLY, up by 28% YoY / down by 19% QoQ. This took the 9MFY22 earnings to PKR 4,321mn (EPS: PKR 3.93) against PKR 2,849mn (EPS: PKR 2.59) last year.

 

Result Highlights

 

· Topline during 3QFY22 clocked in PKR 11,990mn, depicting a jump of 27% YoY given a surge in retention prices of over 40%, which offset the impact of a 13% decline in offtake to 1.12mn tons. On a QoQ basis, while prices showed some increase, a 12% dip in dispatches slashed the revenue by 2%. During 9MFY22, sales showed an uptick of 31% YoY amid high retention prices, which counterbalanced the impact of a 7% cut in offtake to 3.52mn tons.

· Gross margins arrived at 27.4% in 3QFY22, slightly under market consensus, compared to 26.8% last year, owing to higher coal costs, PKR depreciation, and augmented energy tariff, which eroded the impact of higher retention prices. This took the margins in 9MFY22 to 27.5% vs. 23.8% in 9MFY21 given stronger growth in retention prices during the first half. On a QoQ basis, we believe a delay in price hike could not completely absorb the impact of the costs above.

 

· Finance cost rose by 56% YoY to PKR 474mn in the quarter under review amid augmented borrowing and higher interest rates.

· The company booked effective taxation at 24% in 3QFY22 vis-à-vis 23% in 3QFY21.

 

Share buyback

 

The Board of the company has expressed an interest to buy back up to a maximum of 25mn shares at the prevailing spot price at the time of purchase. Since this will result in a cancellation of shares, it will lead to higher earnings per share. The purchase period has been defined as May 26, 2022, to August 15, 2022, ending at the latter.

 

Courtesy – AHL Research

 

 

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