Cherat Cement Co’s net profit rises 39% YoY

Cherat Cement Co Ltd (CHCC) announced its annual financial results for the year ended 30 June 2022 (FY21-22), on 25 August 2022, by declaring of net profit of PKR4.45bn (US$20.3m), which was increased by 39 per cent YoY, as compared to PKR 3.2bn in the same period last year. 

Net sales during the reporting period advanced by 27.3 per cent to PKR 32.08bn in FY21-22 from PKR 25.20bn during the same period last year, said a company bourse filling to Pakistan Stock Exchange (PSX). It incurred a higher distribution cost of PKR529m in FY21-22 against PKR429m in the year-ago. The administrative expenses also surged to PKR349m compared to PKR147m in the same period last year.

A company report for the last quarter says that work on balancing, modernisation and replacement (BMR) for Cement Line 1 and installing a new crusher at the quarry face was affected due to manufacturing disruptions and international shipment delays. Still, company management expects it to be completed by September 2022. 

CHCC’s solar panels project, which includes a 11.35MW solar power plant that was commissioned in March 2022, is expected to see the remaining 1.7MW put into operation in the next two months. These initiatives will enable the company to improve operational efficiencies and reduce costs. The land and mining lease for the Line 4 project has been transferred to the company’s name. Initial groundwork is underway on this project.