MLCF Earnings Up 85% in 3QFY25
Staff Report:
Karachi: MLCF has announced its 3QFY25 result on Wednesday which recorded consolidated earnings of Rs2.8bn (EPS of Rs2.67), up by 85% YoY and down by 25% QoQ.
However, the company did not announce any dividends for the investors during the period under review in line with expectations.
The result came higher than expectations in 3QFY25 due to higher-than-expected gross margins, lower than expected distribution costs and lower effective tax rate.Pakistan Stock Concludes on Bullish Note
On quarterly basis the earnings witnessed a decline of 25% due to lower QoQ Net Sales and Gross Margins.
Company recorded gross margins of 36% in 3QFY25 compared to 40% in 2QFY25 and 30% in 3QFY24.
Gross margins are higher on a YoY basis due to lower coal costs which benefitted the company in captive power generation as well, according to channel checks. Another reason for improved margins is higher domestic dispatches on a YoY basis.
Distribution expenses in 3QFY25 decreased by 41% YoY and by 26% QoQ to Rs770mn.
Effective tax rate in 3QFY25 has been at 25% against 27% in 2QFY25 and 35% in 3QFY24.
Net Revenue increased by 4% YoY and decreased by 13% QoQ to Rs16.6bn in 3QFY25. Increase in revenue stood was due to higher domestic dispatches.
To recall, 3QFY25 domestic dispatches for MLCF increased by 5% YoY and decreased by 2% QoQ to 0.94mn tons and export dispatches increased by 8% YoY and decreased by 61% QoQ to 0.03mn tons.
Admin expenses increased by 17% YoY to Rs540mn due to inflationary impact. MLCF is currently trading at FY25E and FY26F PE of 6.8x and 5.9x and Dividend yield of 5% (FY26).” Topline Research said.
