Cherat Cement records Rs3.4bn profit in 1HFY24, announces 15% DPS

February 16, 2024 (MLN): Cherat Cement Company Limited (PSX: CHCC) experienced a rise of 11.95% YoY in its profits, earning a profit after tax of Rs3.4 billion [EPS: Rs17.51], compared to a profit of Rs3.04bn [EPS: Rs15.64] in the same period last year (SPLY).

The Board of Directors (BoD) has declared an interim cash dividend of Rs. 1.5 per share i.e. 15% to reward shareholders for this improved financial performance.

Going by the results, the company's top line expanded by 4.28% YoY to Rs20.29bn as compared to Rs19.46bn in SPLY.

The cost of sales also inched up by 0.84% YoY but as the rise was lesser than proportionate to sales growth, the gross profit of the company improved by 12.24% YoY to Rs6.61bn in 1HFY24.

On the expense side, the company observed a rise in Distribution costs by 23.26% YoY and other expenses by 19.83% YoY to clock in at Rs338.46m and Rs276.1m respectively during the review period.

Likewise, CHCC's administrative expenses went up by 23.54% YoY and were recorded at Rs258m in 1HFY24.

Further contributing to the company's profit, other income surged by 52.67% YoY to stand at Rs189.65m in 1HFY24 as compared to Rs124.22m in SPLY.

The company’s finance costs declined 19.01% YoY and stood at Rs810.55m as compared to Rs1bn in 1HFY23, despite higher interest rates.

On the tax front, the company paid a higher tax worth Rs1.71bn against the Rs1.26bn paid in the corresponding period of last year, depicting a rise of 36.11% YoY.

Amount in thousand except for EPS

Copyright Mettis Link News