Thatta Cement’s profit doubles in FY23

September 27, 2023 (MLN): Thatta Cement Company Limited (PSX: THCCL) doubles its profit in a year, reporting a net profit of Rs249.08 million [EPS: Rs2.5] for the year ended June 30, 2023, showing a remarkable increase of 2.09x YoY from Rs119.29m [EPS: Rs1.2] in the previous year.

Moreover, the Board of Directors of THCCL approved to purchase/buy-back of up to 15 million issued ordinary shares of the company (constituting approximately 15.04% of the current issued and paid-up share capital of the company), of the face value of Rs10 each.

Going by the results made available by the company on the PSX, THCCL's top line rose by 26.88% YoY to Rs5.41 billion as compared to Rs4.26bn in SPLY.

The cost of sales also rose by 26.53% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 31.16% YoY to Rs420.51m in FY23.

Moroever, during the review period, other income almost tripled in a year to stand at Rs258.69m in FY23 as compared to Rs87.1m in FY22.

On the expense side, the company observed a rise in Selling and distribution cost by 50.97% YoY and other expenses by 30.43% YoY to clock in at Rs88.5m and Rs31.02m respectively during the review period.

The company’s finance costs grew by 52.38% YoY and stood at Rs50.86m as compared to Rs33.38m in FY23, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs115.45m against the Rs35.47m paid in the corresponding period of last year, depicting an increase of 225.47% YoY.

Amount in thousand except for EPS

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