February 17, 2022 (MLN): The net profits of Cherat Cement Limited (CHCC) for the period of six months ended on December 31, 2021, have soared by 2x YoY to stand at Rs2.36 billion (EPS: Rs12.20), compared to Rs1.12bn profit recorded in 1HFY21.
This jump in bottom-line is due to improved dynamics in the construction sector, higher retention prices in the local market and lower financial cost.
During the period under review, the company witnessed robust growth in topline as it went up by 27.53% YoY to Rs14.7bn while the cost of sales only increased by 20% YoY. Resultantly, the gross margins improved from 23.83% to 28.14% during 1HFY21.
Drilling further, the other income of the company remained in the limelight throughout the period as it provided reasonable support to the bottom line of the company by registering a 6x YoY upsurge to lock in at Rs288.64mn in 1HFY22. This increase is attributed to due to exchange gain on hedging instruments given sequential rupee depreciation, as noted by Foundation Securities.
On the cost front, the distribution and administrative expenses surged by 25.73% and 26.7% YoY to stand at Rs242mn and Rs167mn, respectively.
Meanwhile, the finance cost of the company dropped by 32% YoY to Rs600mn on the back of de-leveraging of debt (short-term).
During the period, the company paid Rs861mn in terms of taxation, compared to Rs385mn paid in 1HFY21.
|
Financial results for the half-year ended December 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
Dec-21 |
Dec-20 |
% Change |
|
|
Turnover – net |
14,778,715 |
11,588,614 |
27.53% |
|
Cost of sales |
(10,620,716) |
(8,827,126) |
20.32% |
|
Gross profit |
4,157,999 |
2,761,488 |
50.57% |
|
Distribution costs |
(242,678) |
(193,011) |
25.73% |
|
Administrative expenses |
(167,868) |
(132,447) |
26.74% |
|
Other expenses |
(204,782) |
(86,211) |
137.54% |
|
Other income |
288,645 |
48,452 |
495.73% |
|
Operating profit |
3,831,316 |
2,398,271 |
59.75% |
|
Finance costs |
(600,330) |
(884,693) |
-32.14% |
|
Profit before taxation |
3,230,986 |
1,513,578 |
113.47% |
|
Taxation |
(861,024) |
(384,920) |
123.69% |
|
Net profit for the year |
2,369,962 |
1,128,658 |
109.98% |
|
Earnings per share – basic and diluted |
Rs12.20 |
Rs5.81 |
|
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