Cherat Cement posts FY16 results, plans second line

Pakistan's Cherat Cement Company Ltd (CHCC) has announced its FY16 results, which saw the company reporting a profit after taxation of PKR1.405bn (US$13.4m) compared to PKR1.288bn in last corresponding financial year, an increase of nine per cent. 

According to a company statement to the Pakistan Stock Exchange (PSX), its net sales increased by eight per cent to PKR7079bn whereas the cost of sales decreased by three per cent to PKR4.445bn.
Moreover, the company also declared a final cash dividend of PKR2.25/share resulting in a full-year payout of 41 per cent, the same as in FY15.

Due to the use of funds for the ongoing expansion project, other income dropped significantly by 78 per cent YoY during FY16 to PKR43m as against PKR201m in the same period last year.

CHCC was established in 1981 with its plant located near the district of Nowshera, in KPK Province.

CHCC has currently an installed cement production capacity of 1Mta of clinker, and 1.1Mta of cement, making it one of the smaller cement players in the industry with a two per cent market share. However, the firm plans to install another cement line at the same location with a clinker capacity of more than 1.3Mta (4200tpd). Work on the expansion of second production capacity is in progress and the new line is expected to be commissioned by early 2017. CHCC has also placed a PKR1bn order for a waste heat recovery plant to be added to the second line.