By: AZEE Securities (Pvt) Limited
Attock Cement Company limited has announced its FY14 result. The company has posted 6% decline in earnings to Rs 2,014 million (EPS: Rs 17.59) in FY14 against Rs 2,136 million (EPS Rs 18.65) in FY13. Profitability drop mainly due to unprecedented surge in power tariff and hike in effective taxation by 24% in FY14 against 20.2% in FY13. However higher volumetric sales and surge in other income did supported the bottom-line. On QoQ basis however the earning growth stayed positive where the company earned Rs 606 million (EPS: Rs 5.29) in 4QFY14 against Rs 537 million (EPS: Rs 4.69) in 3QFY14, depicting surge by 13%. The QoQ rise was on back of higher sales volume which hike by 6% QoQ to 503k tons in 4QFY14.
Dividend payout ratio on the rise
ACPL board also announced final cash dividend of Rs 10/share taking the full year cash dividend to Rs 13/share for FY14. Similarly, dividend payout ratio hike from 60.5% to 73.9% in FY14.
Net sales up by 9%
Revenue of the company increased by 9% to Rs 12.54 billion in FY14 compared to Rs 11.50 billion, mainly owing to the higher dispatches and better retention prices which surge by 3% to Rs 6,540/ton in FY14 versus Rs 6,351/ton in FY13. Company able to improve dispatches by 2.8% to 1.89 million tons in FY14 against 1.84 million tons witnessed in FY13. The higher volumetric sales was on back of significant increase in export sales that totaled 689k tons in FY14 as against 484k tons in FY13. The higher export sales were attributed to increased sales in South Africa, Iraq and Sri Lanka. Local cement sales however in FY14 stood at 1.21 million tons against 1.36 million tons in FY13, depicting decline of 11.2%.