Power Cement Limited recently disclosed its financial results for the fiscal year ending on June 30, 2024. These results give stakeholders a detailed view of the company’s performance and financial health, highlighting key financial metrics and corporate decisions.
Key Recommendations by the Board
At the Board of Directors meeting held on September 25, 2024, the following decisions were made:
- Cash Dividend: NIL
- Bonus Shares: NIL
- Right Shares: NIL
- Any Other Entitlement/Corporate Action: NIL
- Any Other Price-Sensitive Information: NIL
It is clear from these decisions that the company has chosen not to distribute any profits in the form of dividends or bonus shares for the financial year 2024. This likely reflects the company’s need to retain earnings for future growth, reinvestment, or to strengthen its financial position.
Statement of Profit or Loss
For the fiscal year ending June 30, 2024, the company’s financials can be summarized as follows:
- Revenue from contracts with customers stood at 31,077,214 (in thousands of Rupees), a noticeable increase from 28,939,096 in the previous year.
- Cost of Sales also increased to 24,286,813, up from 22,006,880 in 2023.
- Despite the rise in costs, the company recorded a Gross Profit of 6,790,401, which is relatively stable compared to the 6,932,216 achieved in the previous year.
However, significant expenses, such as:
- Selling and Distribution: 3,175,039
- Administrative: 442,075
- Finance Costs: 4,975,033
have led to an operational profit of 3,028,707, down from 3,732,098 in 2023. Furthermore, after accounting for Finance Costs and other deductions, the company registered a loss before income taxation of 1,918,919, a significant drop from the 80,911 reported in 2023.
After taxation and levies, the net loss for the year stands at 2,703,284, compared to a profit of 168,993 in the previous year.
Comprehensive Loss
The company also reported a comprehensive loss of 2,848,906, which includes several items that may be reclassified into profits or losses later. Some of these include:
- Changes in fair value of cash flow hedges, where the company reported a loss of 1,322,256 compared to a gain of 1,887,397 in the previous year.
- Adjustments of 1,152,621 for amounts transferred to profit or loss from previous hedging reserves.
Conclusion
Power Cement Limited faces a challenging fiscal year, with the company reporting significant losses, both in operational and comprehensive terms. These results may reflect broader challenges in the industry or specific operational hurdles faced by the company. Investors may need to consider these figures in the context of the overall economic environment and the company’s future strategic plans.
However, with no cash dividend or bonus shares announced, the company appears to be consolidating its resources, perhaps positioning itself for a recovery or reinvestment phase in the coming years.