Profit of Cherat Cement shrinks by 1% in FY22-23

Cherat Cement Co Ltd (Ghulam Faruque Group) has announced its financial results for the year ended 30 June 2023 by declaring a net profit of PKR4.40bn (US$14.3m) as compared to PKR4.45bn in the same period last year. This translates into a profit shrinkage of 1.2 per cent in FY22-23 due to high finance, distribution, administration and taxation.

The decline is majorly attributable to increased financial charges and higher taxation by AKD Research. The financing rose 41 per cent to PKR1.91bn from PKR1.35bn during this accounting period. 

According to a notification of the company to the Pakistan Stock Exchange (PSX), the net sales during the reporting year increased by 16.5 per cent to PKR37.38bn from PKR32.08bn during the same period last year. It incurred a higher distribution cost of PKR606m against PKR529m in the same period the previous year. The administrative expenses also increased to PKR436m compared to PKR 349m in the same period last year.