Maple Leaf Cement Factory Limited (MLCF) announced its 2QFY22 financial result today, posting a consolidated profit after tax (PAT) of PKR 1,919mn (EPS: PKR 1.75), in contrast to preceding years’ PKR 1,070mn (EPS: PKR 0.97). This took the 1HFY22 bottom-line to PKR 2,757mn (EPS: PKR 2.51) vis-à-vis PKR 1,625mn (EPS: PKR 1.48) in SPLY.

Result Highlights

· Topline of the company displayed a robust jump of 34% YoY during 2QFY22 led by a significant jump in retention prices which offset the impact of a 9% dip in total offtake (1,220k tons vs. 1,343k tons). In 1HFY22, topline growth arrived at 33% as higher prices counterbalanced the impact of a slowdown in dispatches (-7% YoY to 2,356k tons against 2,520k tons in SPLY).

· Margins stunned at 31.8% during the quarter (2QFY21: 24.4%) amid strong retention prices which offset the impact of a volumetric decline, augmented coal prices and PKR depreciation. On a QoQ basis too margins posted a 12% jump from 19.5% in 1QFY21, in lieu of a surge in retention prices and a mix of Afghan coal and pet coke, which cushioned the pressure from high imported coal prices (very less quantity used), and offset the impact of PKR depreciation. In 1HFY22, margins settled at 27.6% against 22.2% last year amid aforementioned reasons.

· Finance costs of MLCF depicted a decline of 48% YoY to PKR 280mn in 4QFY21 owed to lower interest rates.

· The company booked effective taxation at 27% during 2QFY22 vs. 23% in SPLY.

Courtesy – AHL Research