4QFY23 Results Summary:
- Earnings Per Share (EPS): PKR 0.48
- Profit After Tax (PAT): PKR 93 million
- Down 51% YoY
- Down 93% QoQ
- Revenue: PKR 8.63 billion
- Down 9% YoY
- Down 7% QoQ
FY23 Full-Year Results:
- EPS: PKR 22.67
- PAT: PKR 4.4 billion
- Down 1% YoY
- Revenue: PKR 37.38 billion
- Up 17% YoY
4QFY23 Details:
- Revenue decreased by 7% QoQ, primarily due to lower domestic dispatches, down by approximately 16% QoQ. This decline in demand can be attributed to record-high inflation and reduced Public Sector Development Program (PSDP) levels.
- Gross margins declined by approximately 7 percentage points YoY and 5 percentage points QoQ, mainly due to higher freight rates and increased input costs resulting from Rupee devaluation.
- Finance costs increased by 10% YoY and 20% QoQ, driven by a 300 basis points hike in the policy rate in March 2023.
- Other income decreased by about 44% QoQ, mainly due to lower exchange income compared to the previous year.
- PAT was negatively impacted by higher taxation, including an increased super tax charge and deferred tax for the year.
- The company declared a cash dividend of PKR 3.00 for 4QFY23 and PKR 4.50 for the cumulative FY23.
Outlook: Despite the challenges faced in this quarter, the company anticipates an improvement in earnings in upcoming quarters. Factors contributing to this improvement include favorable cement dispatch numbers, normalization of taxation, cement price hikes, and decreasing coal prices. These factors are expected to support gross margins amid rising electricity and transportation costs.
| PKR in Million | 4QFY23A | 4QFY22A | YoY | 3QFY23A | QoQ | FY23A | FY22A | YoY |
| Sales | 8,630 | 9,504 | -9% | 9,299 | -7% | 37,386 | 32,085 | 17% |
| Cost of sales | (6,786) | (6,791) | 0% | (6,892) | -2% | (27,249) | (23,135) | 18% |
| Gross profit | 1,843 | 2,713 | -32% | 2,407 | -23% | 10,137 | 8,951 | 13% |
| Administrative Expenses | (113) | (103) | 9% | (115) | -2% | (436) | (349) | 25% |
| Selling & Distribution | (170) | (144) | 18% | (162) | 5% | (606) | (529) | 15% |
| Other Income & Expenses – Net | 68 | 110 | -38% | 130 | -48% | 92 | 115 | -20% |
| Finance Cost | (499) | (454) | 10% | (415) | 20% | (1,914) | (1,359) | 41% |
| Profit Before Taxation | 1,130 | 2,123 | -47% | 1,846 | -39% | 7,272 | 6,829 | 6% |
| Provisions for tax | (1,037) | (1,930) | -46% | (573) | 81% | (2,868) | (2,373) | 21% |
| ‘Profit after tax | 93 | 193 | -51% | 1,272 | -93% | 4,404 | 4,456 | -1% |
| EPS | 0.48 | 5.25 | 6.55 | 22.67 | 22.93 | |||
| DPS | 3.00 | 3.00 | 1.50 | 4.50 | 3.00 |
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