MLCF_4QFY23 Result Review -Higher taxation turns earnings red, (AKD Off the Analyst's Desk Sep 07, 2023)
AKD, Off the Analyst's Desk
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%/87% 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)
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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