Kohat Cement 1QFY15 net profit up 11% YoY

Pakistan-based producer Kohat Cement posted a net profit of PKR683m (US$6.6m) in the three months to the end of September 2014, up 11 per cent YoY.

The company attributed the higher earnings to better income on cash placements and lower financial charges, Sherman Securities reported on Monday.

During the first quarter of FY15, sales revenue increased by 11 per cent to PKR2.9bn amid higher cement prices and slight increase in volumes which were up by five per cent YoY.

On the other hand, gross margins in the first quarter of FY15 were 35.5 per cent against 38 per cent last year. The decline in gross margins was due to an increase in electricity prices by more than 50 per cent.

Kohat Cement is in process of installing 15MW waste heat recovery (WHR) plant to reduce production costs. The WHR unit is scheduled to come online by the end of FY15 and is expected to meet 30 per cent of the company’s requirements.