Lafarge Pakistan Cement has posted an 86% decline in profit after tax for the quarter ending 30 September at Rs.39 million. Analysts have pointed to the company’s high administrative costs and increased financial costs as reasons for the decline. For the calendar year-to-date, however, the company achieved earnings of Rs.903 million compared with Rs.768 million in the same period last year.
This follows the announcement of mixed results from other Pakistani producers yesterday, with Attock Cement reporting an 18% y/y increase in earnings and DG Khan a decline of 26% y/y. Lucky Cement has yet to report its quarterly earnings, while Fauji Cement has recorded a 61% increase in profit after tax, at Rs.582 million from Rs.361 million in the same quarter last year. Improved sales, higher cement prices and lower input costs are cited as reasons for the company’s success, as well as lower financial charges due to the repayment of about Rs.2.25 billion in loans and reduced corporate tax (down 1%).
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/24102013/mixed_quarterly_results_in_pakistani_cement_industry_329/