KOHC performs exceptionally, EPS jumps 15x owing to higher retention prices

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)

 

Dec-20

Dec-19

% Change

Sales – net

            11,108,015,932

               6,021,108,775

84.48%

Cost of goods sold

            (8,511,478,971)

            (5,865,137,002)

45.12%

Gross profit/ (loss)

               2,596,536,961

                  155,971,773

1564.75%

Selling and distribution expenses

                  (39,008,639)

                  (30,002,019)

30.02%

Administrative and general expenses

                (157,044,591)

                (116,246,341)

35.10%

Other operating income

                     56,385,532

                  153,348,843

-63.23%

Other  expenses

                (137,047,795)

                  (22,383,519)

512.27%

 

                (276,715,493)

                  (15,283,036)

1710.61%

Operating profit/ (loss)

               2,319,821,468

                  140,688,737

1548.90%

Finance cost

                (274,074,523)

                  (19,457,096)

1308.61%

Profit/ (loss)before taxation

               2,045,746,945

                  121,231,641

1587.47%

Taxation

                (573,332,635)

                  (23,466,974)

2343.15%

Profit after taxation

               1,472,414,310

                     97,764,667

1406.08%

Earnings/(loss) per share – basic and diluted (Rupees)

                                  7.33

                                  0.49

1395.92%

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Posted on: 2021-02-17T14:44:00+05:00

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