Maple Leaf Cement Profit Down 17% in Q1 FY25

Maple Leaf Cement Factory Limited (MLCF) announced its financial result for 1QFY25 today, posting a profit after tax of Rs. 1,342 million (EPS: Rs. 1.28) against Rs. 1,626 million (EPS: Rs. 1.55) in SPLY, down 17 percent YoY. Topline during 1QFY25 clocked in at Rs. 15,720 million in contrast to Rs. 16,676 million in SPLY, down 6 percent YoY. According to Arif Habib Limited, this is attributable to lower volumetric local dispatches arriving at 849k tons (down 16 percent YoY). Gross margins remained stable at 31.6 percent in 1QFY25 as compared to SPLY. On QoQ basis gross margins declined by 681bps. Distribution expenses in 1QFY25 increased by 17 percent YoY, settling at Rs. 1,347 million compared to Rs. 1,151 million during SPLY on account of the elevated freight charges amid the axle load factor. The other income declined by 27 percent, clocking at Rs. 55 million in 1QFY25 on the back of lower income from cash and cash balances due to the decline in interest rates. Finance costs in 1QFY25 reduced by 29 percent YoY to Rs. 675 million as compared to Rs. 946 million during SPLY, amid a decline in interest rates. The company booked effective taxation at 36 percent in 1QFY25 vis-à-vis 34 percent in 1QFY24.