Lahore: Maple Leaf Cement Factory Ltd. (MLCF) reported a significant increase in its third-quarter financial performance for the fiscal year 2025, with earnings rising to PkR2.8 billion. This represents an 86% year-on-year increase, surpassing the PkR1.5 billion recorded in the same period last year. The company's earnings per share also improved from PkR1.44 to PkR2.67.

The company attributed this growth to higher-than-expected revenue and reduced taxation charges. Revenue for the quarter was PkR16.6 billion, up 4% from PkR16 billion in the corresponding period last year, driven by a 5% increase in the company's offtakes. Sales of 'hdPutty' exceeded expectations, contributing to the revenue surge.

Gross margins expanded by 5.6 percentage points to 35.5%, aided by increased cement prices and lower coal costs. Additionally, distribution and selling expenses saw a sharp decline of 41% to PkR770 million, reflecting reduced spending on branding and promotional activities.

Despite a decrease in other income, which fell by 51% to PkR127 million, the company's finance costs were reduced by 44% to PkR464 million due to lower borrowing rates and a 6% reduction in total outstanding debt.

Taxation charges were lower than expected, recorded at PkR940 million, resulting in an effective tax rate of 25%, down from 35% in the same period last year. Cumulatively, the company's nine-month earnings for FY25 rose by 46% to PkR7.9 billion, compared to PkR5.4 billion in the previous year.

AKD Securities Limited has revised its rating to 'Neutral' for MLCF, considering a 77% rally in the stock price during the fiscal year to date. The firm's target price for December 2025 remains at PkR71 per share, indicating a potential upside of 5%.