Cherat Cement’s net profit soars 51% to Rs5bn in 1HFY25

February 21, 2025 (MLN): Cherat Cement Company Limited (PSX: CHCC) has reported a remarkable 51.37% increase in its net profit for 1HFY25, reaching Rs5 billion compared to Rs3bn in the corresponding period of the previous year.

CHCC has also declared an interim cash dividend of Rs1.5 per share (15%).

The earnings per share (EPS) surged to Rs26.5, up from Rs17.51 in 1HFY24, reflecting the company’s strong financial performance.

Despite a marginal increase of 0.05% in turnover, which stood at Rs20bn, the company's profitability was bolstered by a significant 8% reduction in the cost of sales.

This led to a 16.5% rise in gross profit, reaching Rs7.7bn.

CHCC’s strategic cost management played a crucial role in driving higher margins amid a competitive market landscape.

Operating profit also showed impressive growth, climbing 26.7% to Rs7.5bn.

This was supported by a substantial increase in other income, which soared by 359% to Rs871 million.

However, distribution costs, administrative expenses, and other expenses rose by 20.8%, 13.7%, and 30%, respectively, reflecting the company’s continued investment in operational expansion and market outreach.

A significant 52.84% reduction in finance costs further strengthened the bottom line, as the company effectively managed its debt and financing arrangements.

Consequently, profit before income tax jumped 40.4% to Rs7bn.

The company’s tax expense increased by 18%, reaching Rs2bn, but the strong operational performance more than offset this impact.

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