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Lack of cost cutting drags down Kohat Cement’s quarterly profits

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 October 23, 2018 (MLN): Kohat Cement Company Limited has suffered nearly 42% decline in the first three months of current fiscal year, as compared to the first quarter of last year. This drop has come about as a result of uninhibited cost of sales.

As per the company’s official report on its financial earnings, net sales registered a decent improvement during the quarter but since cost of sales soared by Rs.592.9 million, the company’s gross profits tripped by 36%.

While some expenses recorded declines, others reported increments, thereby off-setting eachother’s impacts.

Although taxation expenses reduced by 27% or Rs.94.5 million, the company still ended up making Rs.374.6 million lesser profits over the year.

Kohat cement’s basic and diluted earnings per share have also dropped by Rs.2.43 per share, as it logged in at Rs.3.42 per share

 

Profit and Loss Account for the quarter ended September 30th 2018 (Rupees)

 

Sep-18

Sep-17

% Change

Sales – net

                                     3,520,643,233

                                     3,417,430,370

3.02%

Cost of sales

                                   (2,658,257,198)

                                   (2,065,370,367)

28.71%

Gross profit

                                         862,386,035

                                     1,352,060,003

-36.22%

Selling and distribution expenses

                                         (30,518,788)

                                         (30,439,017)

0.26%

Administrative and general expenses

                                         (67,294,764)

                                         (42,550,221)

58.15%

Other operating income

                                           86,206,637

                                           88,324,418

-2.40%

Other operating charges

                                         (60,375,964)

                                       (101,828,275)

-40.71%

 

                                         (71,982,879)

                                         (86,493,095)

-16.78%

Operating profit

                                         790,403,156

                                     1,265,566,908

-37.55%

Finance cost

                                         (10,787,217)

                                         (16,868,831)

-36.05%

Profit before taxation

                                         779,615,939

                                     1,248,698,077

-37.57%

Taxation

                                       (251,072,051)

                                       (345,565,492)

-27.34%

Profit after taxation

                                         528,543,888

                                         903,132,585

-41.48%

Earnings per share – basic and diluted (Rupees)

                                                        3.42

                                                        5.85

-41.54%

 

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Posted on: 2018-10-23T13:14:00+05:00

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