Corporate results: Attock Cement posts Rs470 million profit

Recorded effective tax rate of 34% during 1QFY16 compared to 24% in 1QFY15

KARACHI: Attock Cement - part of the Pharaon Group that has investments in diversified fields such as oil and gas, power generation and IT - has announced a net profit of Rs470 million in the first quarter (Jul-Sep) of fiscal year 2015-16, up just 2% compared to the profit it earned in the same period of the previous fiscal year.

Earnings per share (EPS) were up to Rs4.20 from Rs4.11 in the period under review.

“This was in line with our expectations of an EPS of Rs4.08 for the quarter,” Arif Habib Limited (AHL) analyst report said on Thursday.

The company registered a 10% year-on-year (YoY) decrease in net sales during the first quarter of fiscal year 2015-16 (1QFY16) mainly because of a 10% YoY dip in cement dispatches. The decline in dispatches is caused by 36% decline in cement exports otherwise its local dispatches expanded by 9% year on year, the report said.

The gross margins of Attock Cement jumped 500 basis points YoY to 35% in 1QFY16 amid 22% YoY lower coal prices that stood at $55.24 per ton during the period.

The selling or distribution expenses fell by 30% YoY to Rs190 million from Rs271 million because freight charges on export sales contracted.

The company recorded an effective tax rate of 34% during 1QFY16 which was 24% in 1QFY15.

Published in The Express Tribune, October 23^rd, 2015.

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