Business

Cherat kick-starts new cement line

Profit declines 20% to Rs596m for second quarter ended Dec 31, 2018

Our Correspondent February 28, 2019

The company’s new plant, with 1.3-million-ton capacity per year, was set up with the investment of Rs13b. PHOTO: FILE

KARACHI: Cherat Cement Company Limited, one of the largest cement manufacturers in the country, has kick-started its new cement line with the production capacity of 6,700 tons per day, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Wednesday.

“The company successfully installed and commissioned cement line III, having a capacity of producing more than 6,700 tons of clinker per day, along with the Waste Heat Recovery plant,” stated the notice. With the additional capacity, the company’s total production has increased to more than 4.5 million tons per annum. “The project was completed well before the scheduled time,” stated the report.

During this time, the company also set up Wartsila, dual fuel engines, which will be beneficial as a gas pipeline. It is in the process of being placed and the gas will be available soon. The company’s new plant, with 1.3-million-ton capacity per year, was set up with the investment of Rs13 billion, according to Sharman Securities research analyst Saqib Hussain.

Financial result

Cherat Cement posted a profit of Rs596 million for the second quarter ended December 31, 2018, down 20%, compared to Rs744 million in same period last year.

Earnings per share (EPS) clocked in at Rs3.38 in the period under review compared to Rs4.21 in the corresponding period of last year.

However, on the half-yearly basis, the company posted Rs1.03-billion profit for the first half year ended December 31, 2018, down 24%, against Rs1.35 billion in the same period of 2017. The company’s EPS stood at Rs5.82 in the six-month period ending December 31, 2018 against Rs7.64 in the same period of the previous year.

The company’s results were in line with market expectations as general slowdown prevails in the market, according to the analyst.

He said last year was election year, due to which the government spent extensively on development projects and subsequently, dispatches of every company were positive.

Published in The Express Tribune, February 28^th, 2019.

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