Inside Financial Markets

Attock Cement Private Limited Earnings Clocked – By IGI Research

  • Attock Cement Private Limited: Revenue improved by 4%YoY to PKR 13bn in FY15 on the back of 9%YoY rise in local net retention price to PKR 340/bag.
  • Gross margin improved by 407bpsYoY to 34% in FY15 on the back of lower coal and energy cost.
  • Selling and admin expenses hopped up by 20%YoY to PKR 1.33bn in FY15 on the back of 11%YoY growth in exports to 763kT.
  • Effective tax rate for the period has gone up by 794bpsYoY to 32% owing to imposition of 3%super tax and higher proportion of export sales.
  • ACPL declared final dividend of PKR 10.50/share, taking the total payout for FY15 to PKR14.50/share.
  • The company in its meeting also approved the proposal of enhancing its production capacity by 3300T/day (0.99mnT) with an estimated cost of USD 120mn.

Outlook& Recommendation

The scrip is currently trading at FY16 P/E of 9.7x. With TP of PKR 265/share, the stock offers upside of 32% and we maintain a ‘BUY’ call on the scrip.

Exhibit: Financial Highlights
FY15 FY14 YoY
Revenue 13,086 12,547 4%
Gross Profit 4,396 3,704 19%
Selling and Admin 1,334 1,113 20%
Other Income 423 269 57%
Tax 1,015 621 63%
Net profit 2,206 2,014 10%
EPS 19.26 17.58 10%
DPS 14.50 13.00 12%
Key Ratios
Gross Margin 34% 30%
Net Margin 17% 16%
Effective Tax Rate 32% 24%
Source: IGI Research, Company Financials

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)