Lahore: Maple Leaf Cement Factory (MLCF) announced its financial results for the second quarter of fiscal year 2026, reporting consolidated earnings of approximately Rs 3.12 billion, translating to earnings per share (EPS) of Rs 2.98. While this represents a 17% decline compared to the same period last year, it marks a 14% increase from the previous quarter. The company also reported an increase in earnings for the first half of FY26, totaling Rs 5.85 billion and an EPS of Rs 5.58, reflecting a 15% year-over-year growth.
According to JS Global, the company's gross margins for the second quarter stood at 34.7%, a slight improvement from 33.9% in the first quarter of FY26, but down from 39.8% during the same quarter last year. For the first half of FY26, gross margins were recorded at 34.3%, compared to 36.1% in the corresponding period of the previous year. The year-over-year decline in gross margins was attributed to lower retention prices and increased fuel costs, driven by supply issues with Afghan coal.
The company's net revenue for the second quarter remained stable year-over-year but showed a 15% increase quarter-over-quarter, reaching Rs 18.94 billion. This rise in revenue was primarily due to increased domestic dispatches, which grew by 16% year-over-year and 18% quarter-over-quarter, totaling 1.12 million tons. Despite a 54% year-over-year decrease in other income, a 6% quarter-over-quarter increase was noted.
Maple Leaf Cement also reported a significant reduction in finance costs, which decreased by 69% year-over-year, largely due to lower interest rates and reduced debt levels. However, the effective tax rate for the second quarter rose to 36.1%, up from 32.9% in the first quarter and 27.1% in the same quarter the previous year. For the first half of FY26, the effective tax rate was 34.6%, compared to 29.7% in the corresponding period last year.
Currently, Maple Leaf Cement is trading at a projected price-to-earnings ratio of 7.3 for FY26 and 6.3 for FY27, as noted in the report by JS Global.
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