April 26, 2022 (MLN): Kohat Cement (KOHC) has shown outstanding performance during 9MFY22 as its net profits after tax clocked in at Rs Rs4.6 billion (EPS: Rs23.05), which is 83% times higher than profits of Rs2.5 billion (EPS: 12.06) reported in the same period last year.
The jump in the bottom line was due to improved dynamics in the construction sector, higher retention prices in the local market and higher other income.
During the period under review, the company had posted a revenue of Rs23.58bn against Rs17.8bn in SPLY, up by 32% YoY, primarily on the back of a significant jump in retention prices and dispatches. The cost of sales of the company increased to Rs16.3bn due to rising coal and freight charges. However, the gross margin had improved to 34% as compared to 24% in SPLY, as strong revenue growth offset the impact of higher coal prices, PKR depreciation and augmented energy tariff.
On the expense side, the distribution cost of the company arrived at Rs85.3mn, increasing by 48% YoY. This is primarily attributable to increased freight charges associated with higher export sales. Likewise, the admin expense of the company during the period jumped by 10.4% YoY.
Moreover, a 3.7x YoY increase in other income on the back of an increase in short term investments further reinforced the bottom line.
The effective tax rate during the period was 29% compared to 28% in SPLY.
|
Profit and Loss Account for the nine months ended March 31, 2022 (Rupees) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Sales – net |
23,584,583,666 |
17,819,980,071 |
32.35% |
|
Cost of goods sold |
(16,336,568,338) |
(13,483,605,069) |
21.16% |
|
Gross profit/ (loss) |
7,248,015,328 |
4,336,375,002 |
67.14% |
|
Selling and distribution expenses |
(85,337,445) |
(57,566,251) |
48.24% |
|
Administrative and general expenses |
(257,215,243) |
(232,928,189) |
10.43% |
|
Other operating income |
401,334,906 |
109,536,658 |
266.39% |
|
Other expenses |
(409,129,000) |
(232,548,080) |
75.93% |
|
|
(350,346,782) |
(413,505,862) |
-15.27% |
|
Operating profit/ (loss) |
6,897,668,546 |
3,922,869,140 |
75.83% |
|
Finance cost |
(380,217,271) |
(393,350,150) |
-3.34% |
|
Profit/ (loss)before taxation |
6,517,451,275 |
3,529,518,990 |
84.66% |
|
Taxation |
(1,887,662,113) |
(997,806,454) |
89.18% |
|
Profit after taxation |
4,629,789,162 |
2,531,712,536 |
82.87% |
|
Earnings/(loss) per share – basic and diluted (Rupees) |
23.05 |
12.60 |
82.94% |
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