Cherat Cement announces profit of Rs621 million

Published: February 9, 2017
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KARACHI: Cherat Cement Company Limited (CHCC) announced a profit of Rs621 million for the second quarter ended December 31, 2016, up 52% from Rs408 million in the same period of the previous year, according to a company notice sent to Pakistan Stock Exchange (PSX).

Earnings per share (EPS) increased to Rs3.51 from an EPS of Rs2.31 in the period under review.

Cumulatively, earnings for the first six months (Jul-Dec) touched Rs1.02 billion, up 51% compared with Rs676 million in the same period of the previous year.

CHCC’s share price edged up to Rs181.14, an increase of 0.33% compared to its last day’s closing price. The KSE-100 index closed at 49,874, down 15 points or 0.03%.

The company’s revenue increased due to incremental output from operational expansion and improved gross margin of 4.41 percentage points year-on-year/3.04 percentage points quarter-on-quarter likely due to operational efficiencies attributable to the new line, according to a AKD Research report.

The earnings came in significantly above expectation of Rs399 million (or an EPS of Rs2.26) likely due to greater than expected gross margin arising from cheaper coal inventory and operational efficiencies of new line, the report added.

The company also announced a dividend of Rs1 per share (payout: 17%) for the first half of fiscal year 2017 compared with Rs1 per share (payout: 26%) in the first half of fiscal year 2016.

The dividend payout was lower than expectation of Rs2 per share (expected payout ratio: 44%) indicative of constrained payout ratio in the future. 

Published in The Express Tribune, February 9th, 2017.

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