Lahore, Maple Leaf Cement Factory Limited (MLCF) reported a 33% decrease in consolidated earnings for the third quarter of fiscal year 2024, recording profits of PkR1.5 billion, down from PkR2.2 billion in the previous quarter. The company attributed the decline primarily to reduced sales volumes and a contraction in gross margins.

According to AKD Securities Limited, total revenue for MLCF fell by 12% quarter-over-quarter to PkR16.0 billion, driven by a 16% drop in sales volumes from 1.10 million tons in the second quarter to 0.92 million tons in the third. Gross margins decreased to 29.9% from 35.3%, impacted by increased local coal prices due to new axle load regulations. Additionally, distribution costs were reduced to PkR1.3 billion from PkR1.6 billion, a 20% decrease, largely due to lower transportation charges resulting from decreased sales. Finance costs also saw a decline, dropping 10% to PkR825 million as a result of reduced borrowings.

The company's earnings for the first nine months of fiscal year 2024 totaled PkR5.0 per share, down 13% from PkR5.7 per share in the same period last year, influenced by a sharp rise in operating expenses amidst higher inflation and financial charges.