February 16, 2022 (MLN): After witnessing a falling topline for three consecutive years, Pioneer Cement Limited (PIOC) posted a robust expansion in its bottom-line at the close of the half-year ended December 31, 2021.
As per the latest results issued to the bourse, PIOC elevated its net sales during 1HFY22 by 58% YoY to Rs14.8 billion and its net profits by 88% YoY to Rs1.1bn. This translated into earnings per share which clocked in at Rs5.03 compared to Rs2.67 in the corresponding period last year.
The solid increase in the company’s net revenues was attributable to better cement retention prices and increased dispatches in the domestic market during the period.
Gross sales for the company registered a 47% YoY incline to Rs21bn compared to Rs14bn in the corresponding period last year. Cost of production also increased notably by 40% YoY amid higher coal and oil prices against an inadequate increase in cement prices to fully pass on the cost pressure. However, the gross margins of the company remained elevated at 22% compared to 12% last year, supported by higher local dispatches and retention prices. To note, PIOC’s gross margins had been on a decline since FY17.
Furthermore, amid lack of exports, the firm’s distribution expenses declined by 16% YoY and its other expenses went down by 91% YoY, as a result of which the company’s operating profit rose by 2.5x YoY to Rs2.96bn, this was also bolstered by an increase in other income by 6.7x YoY to Rs171.8 million. Accordingly, the operating margin reached 20%, compared to 13% in 1HFY21.
During 1HFY22, the finance cost of the company jumped by 40% YoY due to higher short-term borrowings and an increase in interest rate.
On the taxation front, the company’s effective tax rate clocked in at 36% during 1HFY22, as compared to the tax credit booked in the same period last year.
|
Financial Results for the half-year ended December 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Sales gross |
|
|
|
|
Cement – Local |
21,001,757 |
14,221,071 |
47.7% |
|
Cement – Export |
– |
51,692 |
|
|
|
21,001,757 |
14,272,763 |
47.1% |
|
Less: |
|
|
|
|
Sales Tax |
(3,424,558) |
(2,410,566) |
42.1% |
|
Federal Excise duty |
(2,633,040) |
(2,365,493) |
11.3% |
|
Commission |
(112,176) |
(108,370) |
3.5% |
|
Discount and rebate |
(20,535) |
(17,726) |
15.8% |
|
|
(6,190,309) |
(4,902,155) |
26.3% |
|
Sales – net |
14,811,448 |
9,370,608 |
58.1% |
|
Cost of sales |
(11,571,571) |
(8,231,424) |
40.6% |
|
Gross profit |
3,239,877 |
1,139,184 |
184.4% |
|
Distribution cost |
(57,276) |
(67,911) |
-15.7% |
|
Administrative expenses |
(68,415) |
(59,892) |
14.2% |
|
Other income |
(171,836) |
(25,599) |
571.3% |
|
Other expenses |
18,594 |
198,304 |
-90.6% |
|
|
(278,933) |
44,902 |
|
|
Operating profit |
2,960,944 |
1,184,086 |
150.1% |
|
Finance cost |
(1,172,783) |
(838,684) |
39.8% |
|
Profilt before taxation |
1,788,161 |
345,402 |
417.7% |
|
Taxation |
(644,932) |
261,109 |
|
|
Profit after taxation |
1,143,229 |
606,511 |
88.5% |
|
Earnings per share – basic and diluted (Rs) |
5.03 |
2.67 |
88.4% |
30871
