Maple Leaf Cement Factory is expected to announce 2QFY23 soon.

Maple Leaf Cement Factory Limited (MLCF) is expected to announce 2QFY23 results sometime in late Jan/early Feb’23, where we expect the unconsolidated EPS for the quarter to clock in at PkR1.38, changing by 22%/-20% on QoQ/YoY basis. On the topline front, revenue is expected to settle at PkR15bn (↑ 17%/20% QoQ/YoY), majorly due to increased offtakes during the outgoing quarter (up 29%QoQ) vs. 1QFY23 as torrential floods and demand destruction bore its effects during the period.

Furthermore, we expect the gross margins to clock in at 29% (vs. 28%/31% last quarter/last year), as the company continues to show prowess inefficient coal inventory management alongside the ability to utilise local coal successfully (~70% of coal mix) and pet coke in its fuel mix, significantly higher compared to peers. This is further aided by commissioning the newer Line-4 during Nov’22.

Overall, the company is expected to post PAT of PkR2.6bn (EPS: 2.5) for 1HFY23, up 12%YoY.

Courtesy-  AKD Research

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