October 16, 2018 (MLN): Cherat Cement Company Limited has stated a dip in its profits by almost 28.87%, owing to decreased top-line earnings coupled with increased operating expenses for the period ended September 30th, 2018 as compared to the corresponding period last year.
According to the financial earnings report issued to PSX, even though the cost of production decreased by Rs. 113 million (-3.91%), the plunge in top-line earnings by almost Rs. 550 million (-14.14%) caused the gross profit to drop by 44.14%
Likewise, despite the fact that the effect of increase in Distribution costs of Rs. 9 million (+12.15%) and Administrative expenses of Rs. 8 million (+14.43%) was cancelled out by a larger decrease in non-core expenses of 22 million (-54.74%) and increase in non-core income of Rs. 4 million (+20.78%), the overall effect of these fluctuations on the change in ultimate profits remained negative.
Moreover, a slight increase in the Finance costs by nearly Rs. 2 million (+2.32%) further contributed to the weakened financial position of the company.
The Earnings per share of the company reported a decline of 28.86%.
|
Financial Results for the Period Ended September 30th 2018 ('000 Rupees) |
|||
|---|---|---|---|
|
Sep-18 |
Sep-17 |
% Change |
|
|
Turnover — net |
3,340,939 |
3,891,022 |
-14.14% |
|
Cost of sales |
-2,788,334 |
-2,901,696 |
-3.91% |
|
Gross profit |
552,605 |
989,326 |
-44.14% |
|
Distribution costs |
-91,035 |
-81,171 |
12.15% |
|
Administrative expenses |
-64,743 |
-56,579 |
14.43% |
|
Other expenses |
-18,599 |
-41,096 |
-54.74% |
|
Other income |
24,649 |
20,409 |
20.78% |
|
Operating profit |
402,877 |
830,889 |
-51.51% |
|
Finance costs |
-97,639 |
-95,425 |
2.32% |
|
Profit before taxation |
305,238 |
735,464 |
-58.50% |
|
Taxation |
125,873 |
-129,355 |
|
|
Net profit for the period |
431,111 |
606,109 |
-28.87% |
|
Earnings per share — basic and diluted |
2.44 |
3.43 |
-28.86% |
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