As announced on 18 October, Attock Cement Pakistan Ltd (ACPL) reported a significant decline in profit for the 1QFY24-25. The company revealed a profit after tax of PKR62m (US$223,674), a dramatic drop from PKR1.544bn in the same period last year, marking a 96 per cent YoY decrease. This decline is attributed partly to the gain from selling its subsidiary, Saqr Al Keetan, in the 1QFY23-24. However, a closer examination of the results indicates that increased distribution and financial costs negatively impact profit.
According to AHL Research, the company’s topline revenue for 1QFY24-25 was PKR6.426bn, down four per cent from PKR6.66bn in the same period last year. This decrease was due to lower local dispatch volumes, which fell to 266,000t, a 21 per cent decline year over year. Selling and distribution expenses in the 1QFY24-25 rose by 34 per cent to PKR731m, compared to PKR545m during the same period last year. This increase is primarily attributed to higher freight charges from the axle load factor.
Other income plummeted by 99 per cent to PKR30m in the 1QFY24-25, largely due to the one-time gain from the sale of Saqr Al Keetan for Cement Production Co in the 1QFY23-24. Finance costs surged by 252 per cent YoY to PKR132m in the 1QFY24-25, up from PKR37m during the same period last year, driven by an increase in short-term borrowings.
By Abdul Siddiqui, Pakistan
