JS Securities Limited – MLCF

Karachi, January 27, 2015 (PPI-OT): 2QFY15 EPS stood at Rs1.68

Maple Leaf Cement Factory announced PAT of Rs888mn (EPS: Rs1.68) in 2QFY15, which is up 63% QoQ but down 4% YoY. This takes 1HFY15 earnings to Rs1,434mn (EPS: Rs2.72), down 3% YoY. Surprisingly, the company also announced an interim dividend of Re1/share.
The result was in line with JS Securities Limited’s expectations of Rs1.76/share, while tax rate clocked in at 22% vis-a-vis JS Securities Limited’s expectation of 18%

Sales revenue in 2Q improved by 17% QoQ/12% YoY, whereas gross margins shot up to 37% (+111bp QoQ / +127 bp YoY) mainly on the back of subdued coal prices and lower fuel costs.

During 1HFY15 sales revenue grew 9% YoY with gross margins expanding to 36% (+217bp YoY). Finance costs dropped 25% YoY on the back of aggressive deleveraging coupled with lower interest rates. PBT in 1HFY15 clocked in +31% YoY, but Alternate Corporate Tax adjustment wiped off the benefits at PAT levels.

JS Securities Limited awaits financial statements for more analysis.

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