August 26, 2020 (MLN): Cherat Cement Company Limited (CHCC) has announced its FY20 financial results, wherein the company reported a net loss of Rs 1.89 billion (LPS: Rs 9.74), as against a net profit of Rs 1.76 billion (EPS: PKR 9.07) in FY19.
According to the research of BIPL, the loss is attributed to gross margins attrition that clocked in at 2% in FY20, dropped by 16ppts on the back of lower retention price and higher energy cost.
The company’s net sales for FY20 recorded at Rs 17.09 billion, up 8% YoY. As per BMA research, an increase in topline was mainly driven by a 35% increase in volumetric sales; however, an increase in net sales was limited by lower realized prices.
The other major highlight is finance cost which ballooned by 2.2 times YoY to stand at Rs 2.52 billion in FY20.
Meanwhile, the company also recorded a tax reversal of Rs 829 million that lowered the loss during the year, BMA research added.
Consolidated Financial Results for the year ended June 30, 2020 ('000 Rupees)
Jun-20
Jun-19
% Change
Turnover – net
17,090,155
15,862,647
7.74%
Cost of sales
(16,703,668)
(12,979,533)
28.69%
Gross profit
386,487
2,883,114
-86.59%
Distribution costs
(362,003)
(396,338)
-8.66%
Administrative expenses
(271,750)
(293,925)
-7.54%
Other expenses
(19,025)
(109,360)
-82.60%
(652,778)
(799,623)
-18.36%
Other income
70,561
106,836
-33.95%
Operating (loss)/profit
(195,730)
2,190,327
–
Finance costs
(2,526,997)
(1,142,559)
121.17%
(Loss)/Profit before taxation
(2,722,727)
1,047,768
–
Taxation
829,619
714,995
16.03%
Net profit for the year
(1,893,108)
1,762,763
–
(Loss)/Earnings per share – basic and diluted (Rupees)
