Cherat Cement records losses of Rs560 million in 1HFY20

February 12, 2020 (MLN): Cherat Cement Company Limited has asserted net losses of Rs. 560.1 million (LPS: Rs. 2.88) for the half-year ended on December 31, 2019, as opposed to profits of Rs. 1.02 billion (EPS: Rs. 5.29) reported in the same period of last year.

The losses persisted for yet another period on the back of a fourfold rise in the finance cost, which in turn resulted from an increase in the borrowing for the company’s newly installed plant.

Even though there was a decline in the local retention prices, the revenue of the company exhibited a growth of 35.2% due to the rise in local dispatches generated from the new plant.  

On the other hand, the cost of sales increased by 53.5% owing to increase in fuel land power expenses as well as lower retention prices.

From a brighter perspective, the company’s losses came down from Rs. 882 million to Rs. 560 million during the aforesaid period, due to presence of negative tax of Rs. 322.3 million.

It may be noted here that the company outperformed market expectations, as its losses were lower than the projections put forth by brokerage houses.

Financial results for the half-year ended December 31, 2019 ('000 Rupees)

 

Dec-19

Dec-18

% Change

Turnover – net

9,511,621

7,032,961

35.24%

Cost of sales

(8,854,200)

(5,765,958)

53.56%

Gross profit

657,421

1,267,003

-48.11%

Distribution costs

(181,788)

(191,078)

-4.86%

Administrative expenses

(145,654)

(147,172)

-1.03%

Other expenses

(9,481)

(44,126)

-78.51%

Other income

48,711

71,097

-31.49%

Operating profit

369,209

955,724

-61.37%

Finance costs

(1,251,652)

(227,837)

449.36%

Profit before taxation

(882,443)

727,887

 

Taxation

322,334

299,542

7.61%

Net profit for the year

(560,109)

1,027,429

 

Earnings per share – basic and diluted (Rupees)

(2.88)

5.29

 

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Posted on: 2020-02-12T13:05:00+05:00

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