Kohat Cement’s financial performance remains dismal, profits dip by 83%

October 29, 2019 (MLN): Kohat Cement Company Limited (KOHC)’s overall financial performance for the quarter ended September 30th 2019 has remained dismal as its net profits after tax deteriorated extensively by 83% to Rs 88 million against Rs 528 million reported in the corresponding period last year.

As per the financial statement issued by the company, decline in profitability largely came on the back of drop in overall dispatches of the Company, poor gross margins led by lower domestic retentions and rise in cost structure of the Company due to devaluation, axle load restriction and administrative hike in energy prices.

Thus, the gross profits of the company dropped massively by 85.64%, as a result of higher gas and electricity tariffs implemented in the new fiscal year.

Although, the company witnessed significant reduction in its measure expense heads such as Selling and Distribution cost dipped by 12.2%, admin and general expenses by 11.2% and other operating expenses by 83%, the impact was not enough to lift company’s profitability.

Finance charges of the Company declined by 28%, as the company took a decision to not pursue expansion due to higher interest rates.

Profit and Loss Account – For the Quarter Ended September 30th 2019 (Rs'000)

 

Sep-19

Sep-18

% Change

Sales – net

 2,993,547,135

 3,520,643,233

-14.97%

Cost of goods sold

 (2,870,262,703)

 (2,661,872,709)

7.83%

Gross profit

 123,284,432

 858,770,524

-85.64%

Selling and distribution expenses

 (23,616,437)

 (26,903,277)

-12.22%

Administrative and general expenses

 (59,714,666)

 (67,294,764)

-11.26%

Other operating income

 102,252,686

 121,235,092

-15.66%

Other operating expenses

 (16,277,113)

 (95,404,419)

-82.94%

 

 2,644,470

 (68,367,368)

-103.87%

Operating profit

 125,928,902

 790,403,156

-84.07%

Finance cost

 (7,796,949)

 (10,787,217)

-27.72%

Profit before taxation

 118,131,953

 779,615,939

-84.85%

Taxation

 (29,967,380)

 (251,072,051)

-88.06%

Profit after taxation

 88,164,573

 528,543,888

-83.32%

Earnings per share – basic and diluted (Rupees)

 0.44

 2.63

-83.27%

 

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Posted on: 2019-10-29T13:58:00+05:00

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