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.
| Condensed Interim Financial Results for half year ended 31 December 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales | 20,291,050 | 19,457,412 | 4.28% |
| Cost of sales | (13,684,329) | (13,570,961) | 0.84% |
| Gross Profit | 6,606,721 | 5,886,451 | 12.24% |
| Distribution costs | (338,462) | (274,590) | 23.26% |
| Administrative expenses | (258,000) | (208,837) | 23.54% |
| Other Income | 189,646 | 124,220 | 52.67% |
| Other expenses | (276,100) | (230,405) | 19.83% |
| Finance cost | (810,547) | (1,000,753) | -19.01% |
| Profit before taxation | 5,113,258 | 4,296,086 | 19.02% |
| Taxation | (1,711,886) | (1,257,739) | 36.11% |
| Net profit for the period | 3,401,372 | 3,038,347 | 11.95% |
| Basic earnings/ (loss) per share | 17.51 | 15.64 | – |
Amount in thousand except for EPS
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Posted on: 2024-02-16T12:22:40+05:00
