Cherat Cement profits plunge by 28.8% following a dip in top-line earnings

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 30^th, 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%.

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