Karachi, September 07, 2023 (PPI-OT): MLCF - 4QFY23 Result Review -Higher taxation turns earnings red
MLCF announced its 4QFY23 result today where the company posted unconsolidated LAT of PkR565mn (LPS: PkR0.5) compared to NPAT of PkR1.5bn (EPS: PkR1.4). The recorded loss was primarily on the back of higher taxation due to supertax and deferred taxation. Additionally, company has also announced the shares buyback of 100mn shares.
Net sales of the company clock in at PkR15.0bn vs. PkR17.0bn in previous quarter, a decline of 12%QoQ, majorly attributable to 18% quarterly decline in the offtake.
Gross margins of the company contracts during the quarter, clocking in at 23.7% vs. 24.9% in 3QFY23. This contraction is possibly due to increase in the weighted average cost of coal.
Finance cost also increased by 101%/87percentage QoQ/YoY, clocking in at PkR1.0bn compared to PkR498/536mn in the previous quarter. These heightened financial charges are majorly due to an increase in interest rates.
Moreover, effective taxation for the quarter is reported at PkR2.3bn (ETR of 133% vs. 34% in previous quarter), due to supertax charges and deferred taxation.
Overall, full year earnings cumulate to PkR4.5bn (EPS: PkR4.2), an increase of 24%YoY compared to NPAT of PkR3.6bn (EPS: PkR3.4) in SPLY. Full year increase in earnings is on the back of improved sales amidst increases in cement prices (FY23 avg PkR1,071/bag vs PkR770/bag in FY22)