May 06, 2022 (MLN): Pioneer Cement (PIOC) has earned net profits of Rs1.63 billion during the nine months ended March 31, 2022, showing a growth of 26% YoY against the net profit of Rs1.29bn reported in the same period last year, mainly on the back of improved gross margins.
This has translated into earnings per share of Rs7.17, up by 26% when compared to EPS of Rs5.69 in 9MFY21.
During the period under review, the company generated net revenue of Rs22.54bn, an increase of 44.10% over SPLY on improved local net sale price coupled with a 2.60% increase in quantitative local dispatches.
Meanwhile, the cost of sales increased by 36.3% YoY to Rs17.65bn. This increase is attributable to higher input costs, mainly on account of the hike in energy prices globally, and was also induced by 2.11% volumetric growth.
To mitigate the adverse impact of increased energy cost, the management substituted costlier imported coal with cost-effective local and Afghan-origin coal and has also placed maximum reliance on captive power generation plants, the official document said.
Resultantly, the gross margins of the company improved to 22% from 17% in 9MFY21 due to the above-mentioned factors.
Notably, the finance cost witnessed an upsurge of 46% YoY to clock in at Rs1.94bn, caused by a higher utilization level of working capital facilities and an increase in the policy rate by SBP.
Moreover, finance cost for the current period also includes a charge for financing facilities obtained for the installation of power plants, which during the comparative period was capitalized as borrowing cost, it added.
On the cost front, the company paid taxes worth Rs916.7mn during 9MFY22, affecting the financial health of the company.
|
Financial Results for the nine months ended March 31, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Revenue from contracts with customers-gross |
|
|
|
|
Cement – Local |
31,769,738 |
23,506,333 |
35.2% |
|
Cement – Export |
– |
59,950 |
|
|
|
31,769,738 |
23,566,283 |
34.8% |
|
Less: |
|
|
|
|
Sales Tax |
(5,184,168) |
(3,968,176) |
30.6% |
|
Federal Excise duty |
(3,848,082) |
(3,750,416) |
2.6% |
|
Commission |
(194,169) |
(177,656) |
9.3% |
|
Discount and rebate |
(3,939) |
(29,039) |
-86.4% |
|
|
(9,230,358) |
(7,925,287) |
16.5% |
|
Revenue from contracts with customers-net |
22,539,380 |
15,640,996 |
44.1% |
|
Cost of sales |
(17,649,709) |
(12,952,183) |
36.3% |
|
Gross profit |
4,889,671 |
2,688,813 |
81.9% |
|
Distribution cost |
(84,980) |
(101,711) |
-16.4% |
|
Administrative expenses |
(99,115) |
(94,002) |
5.4% |
|
Other income |
27,128 |
239,452 |
-88.7% |
|
Other expenses |
(250,230) |
(97,600) |
156.4% |
|
|
(407,197) |
(53,861) |
656.0% |
|
Operating profit |
4,482,474 |
2,634,952 |
70.1% |
|
Finance cost |
(1,937,174) |
(1,327,579) |
45.9% |
|
Profit before taxation |
2,545,300 |
1,307,373 |
94.7% |
|
Taxation |
(916,763) |
(14,355) |
6286.4% |
|
Profit after taxation |
1,628,537 |
1,293,018 |
25.9% |
|
Earnings per share – basic and diluted (Rs.) |
7.17 |
5.69 |
26.0% |
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