Lahore April 26 2022: Maple Leaf Cement Company (MLCF) has started its capacity enhancement project of 7000 tpd at Line 4 on its existing plant site, according to information shared by the company.
The construction work is in progress with satisfying pace and approximately fourteen shipments of plant and machinery have arrived at construction site to date. The said project is being financed with a mix of concessionary debt and internally generated cash during the period. Management is targeting to achieve COD in 2Q FY 2023.
Further, to control the upcoming inflationary trend in power cost, the Company has started to commission an additional solar power plant of 7.5MW which is expected to be completed in 4QFY2022.
During the first nine months of fiscal year 2022, the Company recorded net consolidated turnover of Rs. 34,091 million against Rs. 26,035 million in the corresponding period last year. The top line of the Company increased by 31% mainly due to improvement in selling prices in the local market. Increase in selling prices is mainly due to high inflationary impact on cost side, especially fuel and power. Growth in construction sector was slower than expected due to lacklustre implementation of large scale projects, less utilization of PSDP budget and lower than expected demand in housing sector.
Total Sales volume of 3,568,126 tons achieved depicts a decrease of 6.05% over 3,798,090 tons sold during the corresponding period last year. Domestic sales volume was 3,478,901 tons dropping by 2.13% as compared to corresponding period last year due to reduction in cement demand in local market.
The Company’s export volume decreased by almost 63.36% to reach 89,225 metric tons from 243,493 metric tons in corresponding period. This decline is mainly attributable to Afghanistan market due to the slow economic activity post American exodus from the country, low margins and banking restrictions. Further, cement dispatches to rest of world are still not feasible due to high production costs in Pakistan and increased shipping rates.
The Company achieved consolidated gross profit of Rs. 9,362 million during the reporting period, an increase of 52% from Rs. 6,160 million in the corresponding period last year.
The Company recorded consolidated pre-tax profit of Rs. 5,790 million for the reporting period against consolidated pre-tax profit of Rs. 3,653 million in corresponding period. Consolidated tax component amounted to a charge of Rs. 1,469 million for the reporting period as compared to Rs. 805 million in the corresponding period.
Profits earned from Maple Leaf Power Limited (MLPL) are exempt from charge of income tax and amounted to Rs. 722 million for the first nine months of financial year 2021-22. The above factors have increased post-tax bottom line for the reporting period at a consolidated profit of Rs. 4,321 million as against Rs. 2,849 million for corresponding period last year representing an increase of 52%.
