Pioneer Cement’s profit up 43% in Oct-Dec quarter

Earnings rise on the back of sales growth, lower tax rate

KARACHI: Pioneer Cement Limited has posted a net profit of Rs799 million in the quarter ended December 31, 2016, up 43% compared to Rs557 million in the same quarter of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.

Earnings per share (EPS) rose to Rs3.52 in Oct-Dec 2016-17 compared to Rs2.45 in the same period of previous financial year. Cumulatively, the company earned a net profit of Rs1.5 billion with EPS of Rs6.61 in the first half (Jul-Dec) of 2016-17, up 52% compared to Rs988 million (EPS Rs4.35) in the corresponding period of previous year.

With the result announcement, the company also declared an interim cash dividend of Rs2.15 per share.

Stock price of Pioneer Cement closed at Rs144.52, up 0.2%, at the PSX. In the broader market, however, the benchmark KSE 100-share Index ended at 48,981, down 33 points or 0.07%.

The increase in earnings is attributable to a 19% year-on-year rise in revenues due to significant growth in sales and one-percentage-point gain in gross margins on the back of lower fuel and power costs, according to a report of BMA Research.

In the Oct-Dec FY17 quarter, the improvement in bottom line came as a result of a 7% quarter-on-quarter growth in revenues amid higher dispatches and a lower effective tax rate of 21% as opposed to 29% in the first quarter.

Published in The Express Tribune, February 23^rd, 2017.

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