February 17, 2021 (MLN): Kohat Cement Company Limited (KOHC) has shown outstanding performance during 1HFY21 as its net profits after tax clocked in at Rs 1.47 billion, which is 15 times higher than profits of Rs 97.76 million reported in the same period last year.
The EPS of the company clocked in at Rs 7.33/sh, jumped from Rs 0.49/sh posted in 1HFY20.
The exceptional increase in company’s profits is largely atrributable to higher retention prices amid low discounts, increase in dispatches and cost efficiencies.
The Net sales of the company jumped significantly by 84.48% YoY, mainy due to upsurge in dispatches and retention prices, increase in MRP and reduction in FED. This along with improving construction sector dynamics led the net revenues to jump to Rs 11.1 billion from Rs 6 billion last year.
As a result, the company’s gross margin remained elevated at 23% compared to 3% in the corresponding period of last year.
On the cost front, admin and distribution cost jumped by 35% and 30% YoY respectively in tandem with sales, while its other expenses rose by 6x during the period.
Moreover, the Finance costs of the company also remained elevated to Rs274, up by 14x owing to interest cost related to expansion.
The effective tax rate of the company came in at 28% compared to 19% in the same period previous year.
Profit and Loss Account for the Half Year ended December 31, 2020 (Rupees)
Sales – net
Cost of goods sold
Gross profit/ (loss)
Selling and distribution expenses
Administrative and general expenses
Other operating income
Operating profit/ (loss)
Profit/ (loss)before taxation
Profit after taxation
Earnings/(loss) per share – basic and diluted (Rupees)
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