Cherat Cement’s profits decline by 23% on account of lower sales revenue

February 14, 2019 (MLN): Cherat Cement Company Limited’s profits for the half year ended December 31, 2018 have decline by 23%, mainly on account of reduction in the company’s topline earnings and growth in operating expenses, creating a twofold impact on the financial position of the company.

On top of this, the finance cost amplified by 25% whereas absence of tax rebates led to the company paying taxes of Rs. 299 million this year, as compared to Rs. 99000 only in the corresponding period last year.

The EPS of the company was reported at Rs. 5.82 for the said period.

Profit and loss account for the six months ended December 31 2018 (Rupees'000)

 

Dec-18

Dec-17

% Change

Turnover — net

7,032,961

7,585,921

-7.29%

Cost of sales

-5,765,958

-5,724,718

0.72%

Gross profit

1,267,003

1,861,203

-31.93%

Distribution costs

-191,078

-165,220

15.65%

Administrative expenses

-147,172

-119,772

22.88%

Other expenses

-44,126

-81,768

-46.04%

 

-382,376

-366,760

4.26%

Other income

71,097

37,357

90.32%

Operating profit

955,724

1,531,800

-37.61%

Finance costs

-227,837

-182,341

24.95%

Profit before taxation

727,887

1,349,459

-46.06%

Taxation

 

 

 

Current

 

-20,817

 

Prior

145,014

81,844

77.18%

Deferred

154,528

-60,928

 

 

299,542

99

 

Net profit for the period

1,027,429

1,349,558

-23.87%

Earnings per share — basic and diluted

5.82

7.64

 

 

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Posted on: 2019-02-14T10:55:00+05:00

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