Kohat Cement full-year profit rises 58.55%, Pakistan

Northern Pakistan-cement based cement producer Kohat Cement Co reported a 58.55 per cent YoY rise in FY13 net profit.

For the July 2012-June 2013 fiscal, the company reported a profit after tax of PKR2.632bn (US$25.55m) against PKR1.66bn during the year before. Net sales increased to PKR11.297bn from PKR9.316bn in FY12. It incurred selling and distribution expenses of PKR58.4m and administrative and general expenses of PKR86.423m compared to PKR46.242m and PKR66.714m, respectively in FY12.

Sales volumes rose by 7.9 per cent to 1.82Mt in FY13. The company’s new grey production line operated at 83.4 per cent capacity utilization while its old grey line still remains no-operational due to overcapacity in the local market, the company has said.

To mitigate increases in energy costs, Kohat management is in the process of establishing a waste heat recovery plant.

On the prospects for the Pakistan market, the company said that increased government spending on various infrastructure projects is expected to buoy domestic demand.