Attock Cement Pakistan : Transmission of Quarterly Report for the 1st Quarter

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:	[e-mail]

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: [phone],

(92-21)34384621-3

Fax: [phone]

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