Tuesday, September 27, 2022

ACPL: Earnings to recoil by 21% YoY in 3QFY19


Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com

Attock Cement Pakistan Limited (ACPL) is scheduled to announce its 3QFY19 financial result on 11th Apr’19 whereby analysts expect the company to post earnings of PKR 529mn (EPS: PKR 3.85), depicting a decline of 21% YoY.

Topline of the company is projected to grow by 14% YoY during the quarter led by a robust 32% growth is dispatches to ~821k tons.

Albeit, margins are set to recoil by 5ppts to 25% amid 6% dip in domestic dispatches to 482k tons together with 20% deprecation in the Pak Rupee against USD.

Additionally, Analysts forecast financial charges to witness a surge of 151% YoY to PKR 185mn in 3QFY19 given higher interest rates and increased borrowing.

Analysts highlight that profitability appears healthy on a QoQ basis (+34%) in lieu of improved margins (25% vs. 21% in 2QFY19) amid reversal in coal prices and higher retention prices tagged with volumetric growth.

With that said, cumulative profitability during 9MFY19 would arrive at PKR 1,346mn (EPS: PKR 9.79), down by 26% YoY from PKR 1,827mn (EPS: PKR 13.29) in 9MFY18.

Similar observations were made during 9MFY19; despite topline growth of 32% YoY at the back of 48% growth displayed by offtake (~2,515k tons), margins are set to take a beating to 23% in 9MFY19 (9MFY18: 33%) given PKR depreciation and higher coal prices.


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