Maple Leaf Cement Factory Limited’s (MLCF) announced its financial results for the first quarter ended September 30, 2020.
The cement maker in the first quarter posted a consolidated profit of Rs. 555 million as compared to a loss of Rs. 982 million in the same period last year. Maple Leaf turned the first quarter into profits after posting a loss for four consecutive quarters.
The net sales of the company during 1QFY21 jumped by 5.32% to Rs. 7.52 billion as compared to Rs. 7.14 billion. This was largely driven by a recovery in sales volumes following the reopening of the domestic economy post-Covid-19 led lockdowns. However, there was a 2.3% fall in dispatches to 1.17 million tons.
The net sales jumped by 25% as compared with the previous quarter. To recall, a major portion of 4QFY20 was severely marred by a lockdown situation due to Covid-19. Increased retention prices amid improvement in cement sales prices in the North region, where the Company has its footprint, along with a possible reduction in dealer discounts also corroborated overall sales performance.
The finance cost of the company declined by 47% to Rs. 426.05 million as compared to Rs. 799.54 million as the loan repricing has started to kick in after a decline in the policy rate by 625bps.
The effective tax rate further dropped to 18% during this quarter due to available tax credits and improved export sales mix, courtesy export sales carry a lower tax rate of 1%. However, in the last four quarters, the company has booked tax reversals.
Earnings per share was reported at Rs. 0.51 as compared to a loss per share of Rs. 1.41.
At the time of filing this report, MLCF’s shares at the bourse were trading at Rs. 42.04, up by Rs. 1.30 or 3.19%, with a turnover of 22.06 million shares on Friday,