Corporate result: Attock Cement’s earnings rise 11%

Amount to Rs470m in 1QFY15.

KARACHI:

Attock Cement Pakistan Limited (ACPL) posted earnings of Rs470 million during the first quarter of fiscal year 2014-15 (1QFY15), up 11% compared to Rs423 million registered during the corresponding period previous year.

Earnings per share (EPS) increased to Rs4.11 during 1QFY15 compared to Rs3.69 during same period previous year.

Growth in earnings was witnessed primarily due to a significant rise in local cement prices, according to a Global Research report.

On a sequential basis, ACPL’s earnings declined 22% quarter-on-quarter (QoQ) due to lower volumetric sales and a weaker sales mix – the relative amounts purchased of each of the products or services a company sells.



Earnings were lower than estimates due to higher than conceived increase in the company’s delivery charges, said the report.

ACPL’s revenues grew by 9% year-on-year (YoY) to Rs3.17 billion during 1QFY15, due to a 15% YoY increase in cement prices to Rs534 per bag. However, an unfavourable sales mix slowed the potential top-line growth during the period, according to Global Research. Sequentially, revenues declined by 5% QoQ due to a 9% decline in cement despatches.

Despite higher cement prices, ACPL’s margins only grew by 1% to 30% during 1QFY15, because of increased electricity prices that resulted in a higher cost of production. Sequentially, gross margins declined by 1% QoQ, with lower volumetric sales and a weaker sales mix negating the rise due to higher cement prices.

Delivery charges of the company grew by 19% YoY to Rs271 million due to a 22% YoY rise in ACPL’s exports.

Published in The Express Tribune, November 1^st, 2014.

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