Cherat Cement achieves profits worth Rs2bn in 9MFY21

April 29, 2021 (MLN): Cherat Cement Company Limited (CHCC) witnessed a turnaround in profitability as its net profits clocked in at Rs 2.22 billion (EPS: 11.44 )for the 9MFY21ended March 31, 2021, compared to a net loss of Rs 1.19 billion (LPS: 6.11) in the SPLY.

The turnaround in earnings from last year is attributable to higher retention prices, increased dispatches and lower interest expense(stemming from 625bps reduction in policy rate since Mar’20), according to the report by Fortune Securities.

As per the financial statement sent to PSX,  the company registered a 34% YoY increase in revenues to Rs 18 billion on an account of higher dispatches and cement prices while its cost of sales jumped by 6% YoY. As a result, the gross profits of the company clocked in at Rs 4.85 billion in 9MFY21.

On the cost front, the distribution expenses and other expenses went up by 15% and 12x, YoY, respectively during the said period.

On the other hand, the finance cost of the company depicted a decline of 37% YoY to Rs 1.21 billion from Rs 1.92 billion amid a reduction of interest rate by 625 bps.

Further, the company paid taxes worth Rs 783 million, while it got a tax credit of Rs 511 million in the same period last year.

Financial Results for the nine months ended March 31, 2021 ('000 Rupees)

 

Mar-21

Mar-20

% Change

Turnover – net

 18,420,773

 13,459,871

36.86%

Cost of sales

 (13,575,623)

 (12,795,614)

6.10%

Gross profit

 4,845,150

 664,257

629.41%

Distribution costs

 (316,461)

 (275,045)

15.06%

Administrative expenses

 (212,836)

 (215,402)

-1.19%

Other expenses

 (169,368)

 (14,083)

1102.64%

Other income

 65,010

 58,879

10.41%

Operating profit

 4,211,495

 218,606

1826.52%

Finance costs

 (1,205,628)

 (1,917,415)

-37.12%

(Loss)/Profit before taxation

 3,005,867

 (1,698,809)

Taxation

 (783,589)

 511,606

-253.16%

Net (loss)/ profit for the period

 2,222,278

 (1,187,203)

(Loss)/Earnings per share – basic and diluted (Rupees)

 11.44

 (6.11)

 

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Posted on: 2021-04-29T14:07:00+05:00

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