Thatta cement reports 214.88% surge in after-tax profits

February 03, 2025 (MLN): Thatta Cement Company Limited (PSX: THCCL) recorded a 214.88% increase in after-tax profit for the half-year ended December 31, 2024, as strong revenue growth and improved margins boosted the company’s financial performance.

The company reported an after-tax profit of Rs1.13 billion [EPS: Rs3.64] during H1 FY24, compared to Rs358.08 million [EPS: Rs2.41] in the same period last year (SPLY).

The company declared an interim cash dividend of Rs0.5 per share (5%) for minority shareholders.

The company’s gross revenue increased by 33.88% to Rs5.6bn, compared to Rs4.18bn in SPLY. Net sales also rose 23.23% to Rs3.85bn from Rs3.12 bn last year, supported by higher demand.

On the cost front, cost of sales increased by 7.53%, reaching Rs2.65bn. However, the gross profit jumped 81.72% to Rs1.2bn, reflecting stronger operational efficiencies.

Meanwhile, selling and distribution costs rose 11.61% to Rs30.92mn, while administrative expenses declined 12.74% to Rs73.55mn, helping control overall expenses.

The company also benefited from a 333.25% surge in other income, which rose to Rs780.33mn from Rs180.11mn in SPLY, contributing to the improved bottom line.

Despite a 4.09% reduction in finance costs, the company’s profit before taxation surged by 171.39%, reaching Rs1.72bn.

On the tax front, Thatta Cement paid Rs594.42mn in taxes during the period, reflecting an increase of 115.05% compared to Rs276.41mn in SPLY.

This performance translates to a stronger financial position, with earnings per share (EPS) increasing by 51.04% to Rs3.64, compared to Rs2.41 in SPLY.

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