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CHCC turns to profit

August 26, 2021 (MLN): Cherat Cement Limited (CHCC) has announced its FY21 financial results wherein the company has reported a profit after tax of Rs3.21billion (EPS: Rs16.5), a turnaround from the same period when it suffered a huge loss of Rs1.89bn (LPS:9.7).

This swing in bottom-line in FY21 is due to improved dynamics in the construction sector, higher retention price and falling finance cost.

During the period under review, the company witnessed robust growth in topline as it went up by 47.5% YoY to Rs25bn due to higher domestic sales, higher retention price to PKR324/bag amid higher MRP and no discounts being offered by the company, a report by Darson Securities said. Resultantly, the gross margins inflated from 2% to 27% during FY21.

On the cost front, the distribution and administrative expenses surged by 18.6% and 7.2% YoY to stand at Rs429mn and Rs291mn, respectively.

Meanwhile, the finance cost of the company dropped by 40% YoY to Rs1.52bn on the back of de-leveraging of debt (short-term) coupled with a lower interest rate.

In conjunction with financial results, the company offered a final cash dividend at Rs1.25 per share i.e., 12.50%.

Financial Results for the Year ended June 30, 2021 ('000 Rupees)

 

Jun-21

Jun-20

% Change

Turnover – net

25,206,811

17,090,155

47.49%

Cost of sales

 (18,478,508)

 (16,703,668)

10.63%

Gross profit

6,728,303

386,487

1640.89%

Distribution costs

 (429,264)

 (362,003)

18.58%

Administrative expenses

 (291,220)

 (271,750)

7.16%

Other expenses

 (251,324)

 (19,025)

1221.02%

 

 (971,808)

 (652,778)

48.87%

Other income

104,900

70,561

48.67%

Operating profit/(loss)

5,861,395

 (195,730)

Finance costs

 (1,524,177)

 (2,526,997)

-39.68%

Profit/(Loss) before taxation

 4,337,218

 (2,722,727)

Taxation

 (1,132,162)

829,619

Net profit for the year

 3,205,056

 (1,893,108)

 

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Posted on: 2021-08-26T14:17:00+05:00

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