MLCF posts Rs1.22bln profit in Q3

KARACHI: Maple Leaf Cement (MLCF) has announced a net profit of Rs1.22 billion, translating into earning per share (EPS) of Rs1.11 for the quarter ended March 31, 2021 as compared with the loss of Rs960.09 million in the corresponding period last year.

“The earnings came above expectations primarily due to higher other income presumed to be in the form of dividend from its subsidiary Maple Leaf Power Ltd,” an analyst at Sherman Securities said.

Company’s sales revenues for the quarter under review clocked in at Rs9.47 billion, up 37.2 percent from Rs6.91 billion recorded in the same period last year.

“MLCF’s topline jumped despite lower volumes owing to retention prices increasing by around 45 percent, as per our estimates.”

MLCF’s gross margin increased to 23 percent during Q3FY21 from negative 3.0 percent in Q3FY20. “We believe improved retention prices more than offset the impact of higher coal prices, keeping margins elevated during the quarter under review,” the analyst added.

For the nine-month period ended March 31, 2021, MLCF posted a net profit of Rs2.84 billion translating into EPS of Rs2.59 compared with the loss of Rs2.72 billion in the corresponding period last year.