Attock Cement sees a drop in profit in 1H14

Attock Cement Pakistan Ltd (APCL) has reported a fall in profit in the first six months of FY14.

Results

• Profit-after-tax decreased by 9% y/y from Rs.958 million in 1H13 to Rs.871 million in 1H14.
• Earnings per share fell to Rs.7.61 in 1H14 compared with Rs.8.37 in 1H13.
• Earnings declined from Rs.601 million (Rs.5.24 per share) in 2Q13 to Rs.449 million (Rs.3.92 per share) in 2Q14.
• The fall in profit is attributed to higher tax rates, inflation and an increase in the cost of electricity and coal.

Outlook

2014 could be potentially difficult for APCL, as well as all cement manufacturers operating in the country, due to rising production and transport costs, power tariff hikes, the devaluation of the rupee and higher interest rates. However, the company is set to benefit from the third quarter increase in the retail price of cement, which will balance out rising costs.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldcement.com/asia-pacific-rim/23012014/attock_cement_sees_a_drop_in_profit_in_1h14_632/