PIOC announces Q3 financial results

Sherman Research has just released an update on Pioneer Cement’s recent quarterly results. Here are the important points from the quarter earnings announcement:

Solid Performance Despite Challenges

Pioneer Cement (PIOC) announced its 3QFY24 financial results today, showcasing a commendable performance amidst various challenges. The company reported a net profit of Rs1.2 billion, translating to an earnings per share (EPS) of Rs5.29. This marks a significant improvement from the same period last year, with a notable 27% year-over-year (YoY) increase.

Key Highlights

1. Revenue Decline and Dispatches

During the third quarter of FY24, PIOC experienced a 7% YoY decrease in its topline. This decline was primarily attributed to a sharp drop in the company’s total dispatches, which plummeted by approximately 20% YoY.

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2. Improved Gross Margin

Despite the challenges in revenue, PIOC managed to enhance its gross margin significantly. In 3QFY24, the gross margin stood at 32%, compared to 27% in the same period last year, marking a 5-percentage-point increase. This improvement can be primarily attributed to higher retention prices, which surged by 19% YoY, and an efficient coal mix.

3. Cost Management Efforts

Operating costs experienced a modest 1% YoY increase during the quarter, despite inflationary pressures. Additionally, the finance cost declined by 22% to Rs680 million. This reduction was mainly due to lower borrowings, as the company prioritizes debt reduction.

4. Sequential Performance

On a sequential basis, PIOC witnessed a 29% quarter-over-quarter (QoQ) decline in net earnings. This decrease can be attributed to lower dispatches and a slight dip in gross margins by 3 percentage points during the period.

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5. Cumulative Performance

For the first nine months of FY24, PIOC posted an EPS of Rs16.9, compared to Rs11.9 during the same period last year, marking a substantial 41% YoY increase in profitability. This growth was primarily fueled by a robust increase in retention prices, resulting in higher gross margins, and a 14% YoY reduction in finance costs.

Conclusion

Despite facing challenges such as reduced dispatches and inflationary pressures, Pioneer Cement managed to deliver a solid performance in the third quarter of FY24. The company’s focus on cost management and debt reduction strategies has contributed to its resilience and improved profitability.

Disclaimer

The information in this article is based on research by Sherman Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →