Maple Leaf Cement Posts 18% Profit Growth in Q1 FY24

Maple Leaf Cement Factory Limited (PSX: MLCF) announced its financial result today, wherein the company reported consolidated earnings of Rs. 1.6 billion up 18 percent YoY in 1QFY24. Earnings came slightly lower than expected due to lower-than-expected gross margins, according to Topline Securities. Actual gross margins came in slightly below expectations at 31 percent. However, gross margins came in significantly higher than 4QFY23 of 25 percent, mainly due to lower coal prices. Topline of the company increased by 30 percent YoY and 11 percent QoQ to clock in at Rs. 16.6 billion in 1QFY24 on the back of higher retention prices and dispatches. MLCF local dispatches in 1QFY24 clocked in at 0.9 million tons, up 11 percent YoY and 5 percent QoQ. Additionally, exports also increased by 56 percent YoY and 40 percent QoQ to clock in at 47,000 tons. This takes MLCF’s cement capacity utilization at 51 percent in 1QFY24 compared to 61 percent in 1QFY23 and 48 percent in 4QFY23. Distribution costs increased by 53 percent YoY, reaching Rs. 1.15 billion. The surge in distribution costs is attributed to higher cement dispatches and the prevailing inflationary environment in the country. Finance cost clocked in at Rs. 946 million, up 69 percent YoY and 7 percent QoQ in 1QFY24 Effective tax rate clocked in at 34 percent in 1QFY24 compared to 30 percent in 1QFY23 and 121 percent in 4QFY23. Earnings per share clocked in at Rs. 1.52 per share compared to Rs. 1.28 in SPLY. At the time of filing, MLCF’s scrip at the bourse was Rs. 35.68, up 0.34 percent or Rs. 0.12 with a turnover of 4,214,464 shares on Friday.