Corporate result: Pioneer Cement posts income of Rs2.91 billion

Published: September 28, 2017
Email
PHOTO: REUTERS

PHOTO: REUTERS

KARACHI: Pioneer Cement Limited posted a net income of Rs2.91 billion in the fiscal year ended on June 30, up 16% compared with Rs2.51 billion in the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) jumped to Rs12.84 compared to an EPS of Rs11.09 in the previous year.

The company announced a final cash dividend of Rs3.35 per share taking cumulative dividend for the year to Rs5.5 per share.

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

The KSE-100 index closed at 42,290, down 376 points or 0.88%. Pioneer Cement’s share price closed at Rs89.56, down 0.08%.

Revenues of the company surged by 13% year-on-year mainly driven by clinker sales made to Fauji Cement during the year.

Gross margins of the company remained above industry average of 40%, however, they dipped slightly by 100 basis points year-on-year to 42% in fiscal year 2017, according to a BMA Capital report.

Margin sustainability can be attributed to the company’s higher reliance on grid for power requirements where the tariff reduced by 1% during the year compared with year-on-year increase of 35% in furnace oil prices and 6% year-on-year increase in gas prices.

Moreover, utilisation of 12W Waste Heat Recovery from third quarter also played its role in offsetting negative impact of increase in coal prices during the year.

Financial charges for the company increased significantly during the fourth quarter due to higher short-term borrowings during the quarter. The decline in other income also supported the view of lower cash-in-hand given higher capital expenditure requirements in near-term.

Effective tax rate stood at 28% during fiscal year 2017 compared with 35% in fiscal year 2016.

Corporate result: Fauji Cement profit dips 51%, amounts to Rs2.6b

Pioneer Cement Plant is located at Chenki at a distance of 40 kilometres from Khushab and 34 kilometres from Jauharabad. Its location in central Punjab allows easy and fast approach to market. The main markets of the company are Punjab and Khyber-Pakhtunkhwa.

Published in The Express Tribune, September 28th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Facebook Conversations

More in Business