ATTOCK CEMENT PAKISTAN LIMITED
First Quarter Report
September 30, 2023
Contents
02 03 06
Company Information | Directors' Review | Condensed Interim Statement |
of Financial Position |
07 08 09
Condensed Interim Statement | Condensed Interim Statement | Condensed Interim Statement |
of Profit or Loss & Other | of Changes in Equity | of Cash Flows |
Comprehensive Income |
10
Selected notes to and forming part of
the Condensed Interim
Financial Statements
Company Information
Board of Directors
Laith G. Pharaon - Chairman
Wael G. Pharaon
Shuaib A. Malik
Abdus Sattar
Shamim Ahmad Khan
Mohammad Haroon
Babar Bashir Nawaz
Chief Executive
Babar Bashir Nawaz
Alternate Directors
Shuaib A. Malik
Irfan Amanullah
Audit Committee of the Board
Shamim Ahmad Khan - Chairman
Shuaib A. Malik
Abdus Sattar
HR & Remuneration Committee
Shamim Ahmad Khan - Chairman
Shuaib A. Malik
Mohammad Haroon
Chief Operating Officer &
Company Secretary
Irfan Amanullah
Chief Financial Officer
Muhammad Rehan
Auditors
M/s. A.F. Ferguson & Co.
Chartered Accountants
Cost Auditors
M/s. UHY Hassan Naeem & Co. Chartered Accountants
Legal Advisor
M/s. HNT & Associates
Registered Office
D-70,Block-4,Kehkashan-5,
Clifton, Karachi-75600
Tel: | (92-21) | 35309773-4 |
UAN: | (92) 111 17 17 17 | |
Fax: | (92-21) | 35309775 |
Email: | acpl@attockcement.com |
Web site: www.attockcement.com
Plant
Hub Chowki, Lasbela, Balochistan
Share Registrar
M/s. FAMCO Associates (Private) Limited
8-F, Near Hotel Faran, Nursery, Block-6,
PECHS, Shahra-e-Faisal, Karachi
Tel: (92-21)34380101-5,
(92-21)34384621-3
Fax: (92-21) 34380106
Bankers
MCB Bank Limited
The Bank of Punjab
Allied Bank Limited
Faysal Bank Limited
Askari Bank Limited
United Bank Limited
Habib Bank Limited
Bank Al-Habib Limited
Meezan Bank Limited
National Bank of Pakistan Limited
Dubai Islamic Bank Limited
Habib Metropolitan Bank Limited
BankIslami Pakistan Limited
Industrial and Commercial Bank
of China Limited
Bank Alfalah Limited
02
Attock Cement Pakistan Limited
Directors' Review
The Directors are pleased to announce the results of the Company for the quarter ended September 30, 2023.
Operational Review
Production and sales figures for the quarter ended September 30, 2023 are as follows:
July-Sep. | July-Sep. | |||
2023 | 2022 | |||
------------- Tons ------------- | ||||
Clinker Production | 558,017 | 362,138 | ||
Cement Production | 347,756 | 308,557 | ||
Cement Dispatches - Local | 338,326 | 264,990 | ||
- Export | 7,840 | 49,458 | ||
Total Cement Dispatches | 346,166 | 314,448 | ||
Clinker Dispatches - Export | 177,289 | 41,358 | ||
Total Dispatches | ||||
523,455 | 355,806 | |||
Clinker Capacity Utilization | 77% | 50% |
Industry Review
During the first quarter of the financial year 2023-24, local dispatches increased by 18% as compared to same period last year. Though, the dispatches in the first quarter has showed an encouraging sign, however, these numbers may not be construed as optimistic as during the same period last year there was a huge urban flooding across the country resulting massive decline in sales in the months of July and August, 2022.
On the export side, dispatches increased by 72% as compared to corresponding period in volumetric terms.
FINANCIAL REVIEW
During the quarter under review, the local dispatches of your company increased by 73,336 tons (28%) as compared to same period last year, whereas in the export market dispatches increased by 94,313 tons (104%) as compared to same period last year. During the quarter under review Government of Pakistan took some tough fiscal and administrative measures in order to rectify the massive imbalances in the economy and in exchange rates. These measures have, to some extent, restored the confidence of the business community in the economy.
The net sales revenue of the Company increased by Rs. 2,296 million (53%) over corresponding period due to increase in dispatches by 167,648 tons as compared to same period last year. The overall net retention (both cement & clinker) increased by Rs. 458 per ton (4%). Net retention of cement on local market increasedby 14% as compared to last year, however, the prices in the international market remained under pressure and in fact, declined to the extent of US$ 1-3 on market to market basis owing to tough competition both from within the country and from regional competitors.
Overall, production cost increased by Rs. 360 per ton (4%) over the corresponding period mainly due to exuberant increase in power tariff by Rs 10.38 per unit (36%) followed by massive upward adjustments in diesel prices. Therefore, the reported gross margin remained at almost the same level of 17%.
First Quarter Report 2023
03
As reported earlier, the company has successfully executed the process of transfer of first lot of 9,000,000 shares of its subsidiary company SAKCPCL in Basra, Iraq. The share transfer was completed on July 26, 2023 and revised Memorandum of Association has been duly endorsed by the Registrar of Joint Stock Companies, in Baghdad, Iraq.
As a result of this transfer, the Company no longer holds controlling interest in Saqr Al Keetan, Basra, Iraq and hence the remaining shareholding i.e. 9,000,000 shares have been reported under the head Investment held for sale-divestment in associated company.
Accordingly, a sum of Rs. 2,197 million has been recognized in the financial statements of the 1Q 2023-24 on account of divestment which represents exchange difference, non competition fee and consideration against loss of control as referred in the note 6 and 11 of the accounts.
Consequently, the net profit after tax has been reported at Rs. 1,544 million.
PROGRESS ON PROJECT
Line-IV
Complete shipments of plant and machinery have arrived at plant site. All civil, mechanical and electrical contractors have been mobilized and the work on the project is in full swing. It is expected that the plant erection would be completed during 1Q 2024.
FUTURE OUTLOOK
The caretaker set up has assumed the charge and IMF program is now again been resumed through stand by arrangement. The election commission has announced the tentative date of election. The central bank has also sent positive signals in the market by not enhancing the bench mark interest rate under the pretext that next 12 months forward looking data favors lower inflation which may result into lower interest rates. Besides this, the Government has taken various administrative measures to discourage the hoardings in US$ and these measures have resulted into almost 6 to 8% appreciation of rupee against US$.
However, the upward movement in energy tariff continues and it would result in increased production cost in days to come besides increase in coal indexes globally owing to upcoming winter season will also negatively impact on the production cost. Both these factors need to be incorporated in end user prices which may not be possible in near term due to sluggish market conditions and these factors may impact the profitability of both the company as well as the sector.
The Management is assessing the situation very carefully and is striving to minimize the impact of this critical situation on the profitability of the Company. The Management is continuously developing cost saving projects and devising strategies to manage its profitability in months to come.
ACKNOWLEDGMENT
The Company deeply acknowledges and recognizes the efforts put in by both the management and non-management staff and offers its sincere thanks to the support it is constantly receiving from both Federal and Provincial Governments, regulatory bodies, its customers, bankers and suppliers.
On behalf of the Board
ABDUS SATTAR | |
Director & Chief Executive | Director |
October 09, 2023
Rawalpindi, Pakistan
04
Attock Cement Pakistan Limited
Condensed Interim Financial Statements
Condensed Interim Statement of Financial Position
As at September 30, 2023
Note | Unaudited | Audited |
Sep. 30, | June 30, | |
2023 | 2023 | |
------------------ | (Rupees '000)------------------ |
ASSETS
Non-current assets
Fixed assets - property, plant and equipment4 Long - term investments
Long - term loans and advances - considered good Long - term deposits
Current assets
Inventories5 Trade receivables - considered good
Loans and advances - considered good Short - term deposits and prepayments Other receivables
Taxation - payments less provisions Short - term investments
Cash and bank balances
Investment held for sale - divestment | 6 |
Total assets
EQUITY AND LIABILITIES
Share capital and reserves
Share capital - issued, subscribed and paid up
Unappropriated profit
31,688,430
57,348
53,008
99,940
31,898,726
5,879,447
1,564,241
564,195
253,774
368,072
834,459
-
710,114
10,174,302
911,500
42,984,528
1,374,270
19,137,886
20,512,156
31,068,301
57,348
53,008
99,940
31,278,597
3,815,145
1,387,948
106,128
92,333
617,885
1,726,400
1,804,815
1,015,016
10,565,670
1,823,001
43,667,268
1,374,270
17,594,244
18,968,514
LIABILITIES
Non-current liabilities
Long - term loans
Deferred Income - Government grant
Lease libilities
Deferred tax liabilities
Employee benefit obligations
Current liabilities | |
Trade and other payables | 7 |
Consideration received against divestment of subsidiary | 6 |
Unclaimed dividend
Accrued mark-up
Short - term borrowings
Sales tax payable
Current portion of lease libilities
Total liabilities
5,910,407
1,469,670
16,875
2,720,946
60,353
10,178,251
7,563,161-
-
11,136
48,425
4,649,319-
-
22,080
12,294,121
22,472,372
6,435,527
1,198,287
16,875
2,760,946
60,631
10,472,266
6,976,903
3,359,948
11,275
145,589
3,708,653
2,040
22,080
14,226,488
24,698,754
Contingencies and commitments | 8 | |||
Total equity and liabilities | 42,984,528 | 43,667,268 | ||
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
Muhammad Rehan | Babar Bashir Nawaz | Abdus Sattar |
Chief Financial Officer | Chief Executive | Director |
06
Attock Cement Pakistan Limited
Condensed Interim Statement of Profit or Loss and other Comprehensive Income
For the quarter ended September 30, 2023 - Unaudited
Note | Sep. 30, | Sep. 30, | |||
2023 | 2022 | ||||
--------------(Rupees'000)------------- | |||||
Revenue from contracts with customers | 9 | 6,660,121 | 4,364,082 | ||
Cost of sales | (5,526,926) | (3,628,585) | |||
Gross profit | 1,133,195 | 735,497 | |||
Distribution costs | 10 | (545,227) | (299,942) | ||
Administrative expenses | (201,046) | (199,729) | |||
Other expenses | (25,000) | (11,000) | |||
Other income | 27,321 | 81,784 | |||
Profit from operations | 389,243 | 306,610 | |||
Gain on divestment | 11 | 2,196,744 | - | ||
Finance cost | (37,344) | (135,953) | |||
Profit before income tax | 2,548,643 | 170,657 | |||
Income tax expense | (1,005,000) | (55,000) | |||
Profit for the period | 1,543,643 | 115,657 | |||
Other comprehensive income | - | - | |||
Total comprehensive income for the period | |||||
1,543,643 | 115,657 | ||||
Basic and diluted earnings per share (Rs.) | 11.23 | 0.84 | |||
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
Muhammad Rehan | Babar Bashir Nawaz | Abdus Sattar |
Chief Financial Officer | Chief Executive | Director |
First Quarter Report 2023
07
Condensed Interim Statement of Changes in Equity
For the quarter ended September 30, 2023 - Unaudited
Issued, | Unappropriated | Total |
subscribed and | profit | |
paid up capital | ||
----------------------------------- | (Rs. '000) ------------------------------------ |
Balance as at July 1, 2022
Profit for the year ended June 30, 2023
Other comprehensive income for the year ended June 30, 2023
Total comprehensive income for the year ended June 30, 2023
Transactions with owners in their capacity as owners
Dividend:
- Final dividend for the year ended June 30, 2022 @ Rs. 1.50 per share
Balance as at July 01, 2023
Profit for the quarter ended September 30, 2023
Other comprehensive income
Total comprehensive income for the quarter ended September 30, 2023
1,374,270
-
-
-
-
1,374,270
-
-
-
16,117,268
1,516,062
167,054
1,683,116
(206,141)
17,594,243
1,543,643
-
1,543,643
17,491,538
1,516,062
167,054
1,683,116
(206,141)
18,968,513
1,543,643
-
1,543,643
Balance as at September 30, 2023 | 1,374,270 | 19,137,886 | 20,512,156 |
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
Muhammad Rehan | Babar Bashir Nawaz | Abdus Sattar |
Chief Financial Officer | Chief Executive | Director |
08
Attock Cement Pakistan Limited
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Attock Cement Pakistan Ltd. published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 10:30:11 UTC.