Maple Leaf Cement Returns to Profit

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,