Maple Leaf Cement Factory Limited (MLCF) has announced its financial results for the first quarter of the fiscal year 2025, reporting a profit after tax of Rs. 1.342 billion (EPS: Rs. 1.28). This marks a 17% decrease compared to Rs. 1.626 billion (EPS: Rs. 1.55) in the same period last year (SPLY).
The company’s topline for 1QFY25 reached Rs. 15,720 million, down 6% from Rs. 16,676 million in SPLY. According to Arif Habib Limited, this decline is primarily due to a reduction in local dispatch volumes, which fell to 849,000 tons, a 16% year-on-year decrease.
Despite these challenges, gross margins remained stable at 31.6% compared to the same period last year. However, on a quarter-on-quarter basis, gross margins declined by 681 basis points.
Distribution expenses rose by 17% year-on-year, totaling Rs. 1,347 million in 1QFY25, up from Rs. 1,151 million in SPLY. This increase is attributed to higher freight charges resulting from the axle load factor.
Other income saw a 27% decline, amounting to Rs. 55 million in 1QFY25, due to reduced income from cash and cash balances amid declining interest rates.
On a positive note, finance costs decreased by 29% year-on-year to Rs. 675 million, down from Rs. 946 million in SPLY, reflecting the impact of lower interest rates.
