Maple Leaf Cement has announced a net profit of Rs2.8 billion for the year ending on June 30, 2014, down 12% compared to Rs3.2 billion in the previous fiscal year.
Earnings per share (EPS) declined to Rs5.36 in the fiscal year (FY) 2013-14 against an EPS of Rs6.11 in FY13.
In FY14, the company recorded revenue of Rs18.9 billion against Rs17.4 billion last year, which was up 9% mainly because of the increase in net retention prices by approximately 11%.
However, the company’s gross profits increased by 8% to Rs6.5 billion while gross margins declined by 1 per cent point to 34%.
On the other hand, the finance cost witnessed a decline of 14% as Maple aggressively pays down its sukuk and syndicated debt obligations. To recall, Maple restructured its Rs12 billion debt back in 2010, which has now seemingly come down.
Although profit before tax in FY14 improved by 14% to Rs3.6 billion, imposition of alternate corporate tax (17% of accounting profit) resulted in a 12% decline in net earnings.
In the fourth quarter of FY14 alone, the company reported an EPS of Rs0.79, which declined by 59% against Rs1.95 in the same period of the preceding year mainly due to a higher effective tax rate.
However, on the pre-tax level, the company’s profits improved by 11% against the corresponding period of last year.
On a quarterly basis, profitability in the fourth quarter of FY14 declined by 55% to Rs0.4 billion compared to Rs1.7 billion or an EPS of Rs1.76 in the earlier quarter of the same year.
Published in The Express Tribune, September 18th, 2014.
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