Report
Shahrukh Saleem
EUR 9.28 For Business Accounts Only

PIOC: 4QFY20 EPS clocks in at PkR1.38, (AKD, Off the Analyst's Desk, Sep 30, 2020)

AKD Research - Off the Analyst's Desk

                   Sep 30, 2020

PIOC: 4QFY20 EPS clocks in at PkR1.38

 

·         Pioneer Cement Ltd. (PIOC) announced result for FY20 where company posted loss after tax of PkR210mn (LPS: PkR0.92) against profit after of PkR790mn (EPS: PkR3.48) for FY19 while for 4QFY20, bottomline witnessed profit after tax of PkR313mn (EPS: PkR1.38) against loss after tax of PkR35/412mn for 4QFY19/3QFY20.

·         Interestingly, topline for 4QFY20 decreased by 86/83% YoY/QoQ to mere PkR314mn despite commencing dispatches from new line during the quarter while prices also improved. Hence, we await clarity from management to explain the steep decline in topline for 4QFY20.

·         Company recorded negative gross margins for the quarter of 14.4% against -6/17% margins witnessed in 3QFY20/4QFY19 as prices declined during the period while COVID-19 related restriction hampered offtake. For FY20, gross margins clocked in at -2% against 22% recorded in FY19.

·         PIOC's distribution cost declined by 65/77% YoY/QoQ for 4QFY20 while administrative expenses moved +16/-54% QoQ/YoY. Finance cost for 4QFY20 increased by 54%QoQ as company started commercial production from new line. 

·         Tax reversal of PkR390mn was witnessed for 4QFY20 which saved the day for PIOC, converting a loss before tax of PkR77mn to a profit after tax of PkR313mn. Tax reversal for FY20 stood at PkR546mn, reducing loss before tax of PkR755mn to loss after tax of PkR210mn.

Provider
AKD Securities Limited
AKD Securities Limited

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.

Analysts
Shahrukh Saleem

Other Reports from AKD Securities Limited

ResearchPool Subscriptions

Get the most out of your insights

Get in touch