February 27, 2020 (MLN): Pioneer Cement Limited (PIOC) has announced its financial results for the half-year ended December 31, 2019, as per which the company has posted a loss of Rs 111 million (LPS: Rs 0.49) against net profits of Rs 526 million (EPS: Rs 2.32) of same period last year.
The main reason for the net losses incurred by the company was a hefty decline in gross level margins.
During the period under review, the topline went down by 18% YoY to Rs 4.14 billion on an account of lower retention price amid intense competition in the local market. This substantial decline in topline shrank the gross margin from 23% to 1% coupled with hike in fuel and power expenses.
On the cost side, the distribution cost jumped by 86.65% YoY whereas other expenses plunged by 100% to stand at Rs 204 thousand.
On the other hand, the other income increased substantially by 8 times YoY to peg at Rs 160 million on an account of outperformance of equity mutual fund investment of the company.
Meanwhile, the finance cost surged by 7.6% YoY to Rs 182 million. However, a tax reversal of Rs 83 million came as a breather in the bottom line.
|
Financial Results for the half-year ended December 31, 2019 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-19 |
Dec-18 |
% change |
|
Gross revenue earned from contracts with customers |
|
|
|
|
Cement- Local |
6,858,768 |
7,052,695 |
-2.83% |
|
Cement- Export |
47,146 |
234,456 |
-79.89% |
|
Clinker-Export |
– |
1,243 |
– |
|
|
6,905,914 |
7,288,394 |
-5.25% |
|
Less: |
|
|
|
|
Sales Tax |
(1,173,269) |
(1,145,063) |
2.46% |
|
Federal Excise duty |
(1,514,602) |
(1,027,681) |
47.38% |
|
Commission |
(39,558) |
(16,964) |
133.19% |
|
Discount and rebate |
(30,758) |
(42,001) |
-26.77% |
|
|
(2,758,187) |
(2,231,709) |
23.59% |
|
Sales – net |
4,147,727 |
5,056,685 |
-17.98% |
|
Cost of sales |
(4,102,710) |
(3,878,441) |
5.78% |
|
Gross profit |
45,017 |
1,178,244 |
-96.18% |
|
Distribution cost |
(161,627) |
(86,595) |
86.65% |
|
Administrative expenses |
(57,251) |
(56,706) |
0.96% |
|
Other income |
160,990 |
18,338 |
777.90% |
|
Other expenses |
(204) |
(147,046) |
-99.86% |
|
|
(58,092) |
(272,009) |
-78.64% |
|
Operating profit |
(13,075) |
906,235 |
|
|
Finance cost |
(182,261) |
(169,374) |
7.61% |
|
(Loss)/Profit before taxation |
(195,336) |
736,861 |
– |
|
Taxation |
83,668 |
(209,900) |
– |
|
(Loss)/Profit after taxation |
(111,668) |
526,961 |
– |
|
Loss/ Earnings per share – basic and diluted (Rs.) |
(0.49) |
2.32 |
– |
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