PIOC 4QFY23 Result review, (AKD Off the Analyst's Desk Sept 28, 2023)
AKD, Off the Analyst's Desk
PIOC 4QFY23 Result review Earnings in the red due to higher taxation
Pioneer Cement Limited (PIOC) announced its 4QFY23 result today, where the company posted a loss of PkR100mn (LPS: PkR0.44) compared to PAT of PkR950mn (EPS: PkR4.18) in the previous quarter. The result fell below expectations primarily due to higher tax charges.
- Net sales of the company clocked in at PkR8.4bn vs. PkR9.2bn in the previous quarter, a decline of 9%QoQ. The said decline is attributable to reduced sales volumes (down 10.3%QoQ) despite improvement in the retention prices during the quarter.
- Gross margins experienced a slight contraction on a quarterly basis, settling at 26.6% compared to 26.9% in the previous before possibly due to elevated fixed costs during the period despite the unchanged weighted average coal and power costs.
- Finance cost of the company reported at PkR563mn compared to PkR867mm in 3QFY23, decline of 35%QoQ where we believe that the impact of increased effective interest rates is largely offset by decline in borrowings (borrowing reduced by PkR2.8bn in 9MFY23).
- Notably, effective taxation stood at PkR1.8bn (ETR: 106% vs. 33% in the previous quarter), primarily due to the impact of supertax and deferred taxation.
- Cumulatively, FY23 earnings reached PkR2.6bn (EPS: PkR11.5) compared to PkR1.1bn (EPS: PkR4.6) in SPLY, up 1.5xYoY. This yearly increase is attributable to increased cement retention prices over the period that outweigh the decline in sales volumes and increased financial charges.
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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