Cherat Cement Company Limited (CHCC) posted an annual profit increase of 45% as the company reported an annual profit of Rs 2.845 billion this year as at June 30, 2018. Last year, the company’s profits stood at Rs 1.956 billion.
Sales for CHCC almost doubled over the year, but the increase in cost of sales outpaced the growth in sales, as costs increase by close to 75% in these twelve months. As a result, the company’s gross profits fell by 2.3%.
Increasing distribution costs, coupled with higher administrative costs and a lower income from other sources of earnings lead to a 7.19% fall in the firm’s operating profits. In addition, the company’s finance costs increased by close to 90%, leading to a 14.4% fall in the firm’s pre-tax profits.
However, due to a 97% reduction in the taxes charges on to these profits, the company’s profit after tax surged by approximately 9% over the year. As a result, the company declared an Earnings per share of Rs 12.07, an 8.94% growth over the EPS of Rs 11.08 declared last year on June 30, 2017.
The company also declared a Cash Dividend of Rs 4.00 per share (i.e. 40%), in addition to the interim dividend already paid by the firm of Rs 1.00 per share.
|Financial results for the year ended June 30th 2018 ('000 Rupees)|
|Turnover – net||14,388,349||9,645,399||49.17%|
|Cost of sales||(11,249,153)||(6,432,281)||74.89%|
|Profit before taxation||2,860,537||2,509,791||13.98%|
|Net profit for the year||2,845,289||1,956,562||45.42%|
|Earnings per share – basic and diluted (Rupees)||12.07||11.08||8.94%|