Earnings to decline despite higher dispatches
Attock Cement Pakistan Limited (ACPL) is scheduled to announce its 3QFY18 result on April 16, 2018. We expect the company to post earnings of PKR 772 million (EPS: PKR 6.74)reporting a decline of 10% YoY owing to higher coal price and greater Federal Excise Duty (FED) compared to SPLY. We expect the company’s topline to increase by 25% YoY owing to higher dispatches during the quarter which increased after commencement of commercial operations of its expansion plant in January. Further, the company under section 65 (B) of the income tax ordinance 2001 is entitled to claim 10% tax credit on its investment in expansion plant but as per the management the tax credit will most likely be claimed in 4QFY18; hence, following the management’s guidance we have not incorporated the tax impact in our earnings estimation for 3QFY18, which as per our calculation will have an impact of PKR 5.61/share in 4QFY18.
Attock Cement Pakistan Ltd. Attock Cement Pakistan Limited is principally engaged in manufacturing and sale of cement. The Company is also engaged in exporting clinker and cement both in bags and bulk to the United Arab Emirates (UAE), South Africa, Iraq, Sri Lanka and many other countries. The Company also has the facility of supply of cement in bulk and also produces the low alkali cement for some of its market. Its products include Ordinary Portland Cement (OPC), which is a product under the Falcon Brand used in all types of general construction. OPC can be used in concretes, mortars, grouts and premix concrete. It also offers Sulfate Resistant Cement (SRC), which is sold under falcon Brand and is used in sea and coastal areas and provides resistance to chemical attack from sulfates and dissolved salts present in sea and saline waters. The Company's Falcon Block Cement product is offered for block and precast slab makers.
Ismail Iqbal Securities (Private) Limited (IISPL) is a TREC holder of the Pakistan Stock Exchange, as well as an SECP registered Underwriter and Book Runner. IISPL provides comprehensive financial services including Equity Sales, Research on Equities and the Macro-Economy, Investment Advisory, Portfolio Management, Corporate Finance, and extensive services for Private Equity investors. IISPL services a diversified client base, from Institutional to Retail Investors including High Net worth Individuals.
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