Cherat Cement reports Rs4.4bn profit, declares 30% final dividend

September 05, 2023 (MLN): Cherat Cement Company Limited (PSX: CHCC) witnessed a meager 1.17% YoY decline in its profitability in FY23, reporting a profit after tax of Rs4.4 billion [EPS: Rs22.67].

This figure marks a slight decrease compared to the Rs4.46bn profit [EPS: Rs22.93] it achieved during the same period last year (SPLY).

Along with the results, the company announced a final cash dividend at Rs3 per share i.e. 30%.

This is in addition to the interim cash dividend already paid at Rs1.5 per share i.e. 15%.

Going by the results, the company's top line expanded by 16.52% YoY to Rs37.39bn as compared to Rs32.09bn in SPLY.

The cost of sales also rose by 17.79% YoY but was lesser than proportionate to sales decline, which improved the gross profit by 13.25% YoY to Rs10.14bn in FY23.

During the review period, other income expanded by 16.25% YoY to stand at Rs453.97 million in FY23 as compared to Rs390.5m in FY22.

On the expense side, the company observed a rise in distribution costs by 14.58% YoY and other expenses by 31.51% YoY to clock in at Rs606.44m and Rs362.03m respectively during the review period.

The company’s finance costs soared by 40.86% YoY and stood at Rs1.91bn as compared to Rs1.36bn in FY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs2.87bn against the Rs2.37bn paid in the corresponding period of last year, depicting a fall of 20.88% YoY.

Amount in thousand except for EPS

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