Pioneer Cement posts Rs646.08mln Q2 profit

Pioneer Cement Limited (PIOC) has announced a net profit of Rs646.08 million translating into EPS of Rs2.84 for the quarter ended December 31, 2020 compared with the profit of Rs73.74 million and EPS of Re0.32 in the corresponding quarter last year.

“The result is above our expectations mainly due to tax credit on newly commissioned cement line,” Saad Hanif at Insight Securities said.

The net sales stood at Rs8.16 billion in the quarter under review, up 115 percent from Rs3.79 billion in the same quarter last year.

“Sales increased due to 1.2 times increase in dispatches and better retention prices. Gross margins increased by 15ppts to clock in at 15.5 percent vs 0.5 percent in the same period last year,” Hanif added.

PIOC recorded finance cost of Rs409.26 million in the quarter as against Rs89.29 million, previously, mainly attributable to commissioning of new cement plant.

For the half-year ended December 31, 2020, Pioneer Cement announced a net profit of Rs606.51 million translating into EPS of Rs2.67 compared with the loss of Rs111.66 million and loss per share of Re0.49 in the corresponding period last year.

Source: THE NEWS