Business

Corporate results: KOHC announces Rs2.1b profit

EPS recorded at Rs13.6 during first half of fiscal year

Our Correspondent January 28, 2016 1 min read

EPS recorded at Rs13.6 during first half of fiscal year. PHOTO: FILE

KARACHI: Kohat Cement (KOHC) on Thursday announced profit after tax of Rs2.1 billion during the first half (Jul-Dec) of fiscal 2015-16, up by a significant 50% from Rs1.4 billion in the same period of fiscal 2014-15, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) jumped to Rs13.60 from an EPS of Rs8.84 in the period under review.

Along with the result, the company has also announced an interim cash dividend of Rs5 per share for the quarter ended on December 31, 2015.

The benchmark-100 index increased 92 points and closed at 31,193 on Thursday, while the share price of Kohat Cement closed at Rs260.25, near the 5% upper lock, after the results exceeded expectations.

The top-line of the company jumped by 20% year-on-year to Rs7 billion as compared to Rs5.9 billion in the same period last year.

The growth in sales stems from higher volumetric sales and stable cement prices during the period, Summit Capital commented on Thursday.

Moreover, gross margins soared by an astonishing 10 percentage points (ppts) year on year to 44% over the period which was largely due to depressed coal prices globally.

In addition to this, company’s other income witnessed a colossal growth of 122% year on year which drove the bottom-line upwards.

Like Kohat, other cement stocks continued to attract investor attention in expectation of improved local dispatches going forward. Maple Leaf Cement increased 1.8% while D.G. Khan Cement was also up 1.3% at the end of the trading day at PSX, Topline Securities said on Thursday.

During the first six months of fiscal 2015-16, cement dispatches increased to 18.21 million tons, up 6.38% compared to 17.12 million tons in the same period of last year, according to All Pakistan Cement Manufacturers Association (APCMA).

Local cement sales continued to help overall dispatches during the first six months of fiscal 2015-16 while cement exports remained under pressure.

“Growth in domestic cement demand is expected to remain healthy while exports shall remain under pressure,” according to Kohat Cement notice to PSX on Thursday.

Published in The Express Tribune, January 29^th, 2016.

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