Thatta Cement's profit increased in FY22-23 and plans share buyback

Thatta Cement Co Ltd (THCCL) announced its financial results for the year ended 30 June 2023 (FY22-23) at the Pakistan Stock Exchange (PSX) on 27 September. It reported an increase in profit after tax to PKR249m (US$0.86m) from PKR119m earned in the corresponding period last year. This reflects a growth of 109 per cent YoY, mostly due to higher sales and other income that made the company report a better profit this year. Its net sales increased to PKR5.41bn from PKR4.26bn during this period. It incurred a higher distribution cost of PKR88m against PKR58m and administrative expenses of PKR144m compared to PKR116m in FY22-23. Other income stands at PKR258m during FY22-23.

Meanwhile, the company's Board of Directors has decided to recommend to the members of the company for their approval by passing special resolutions, the purchase/buy-back of up to 15,000,000 issued ordinary shares of the company (constituting approximately 15.04 per cent of the current issued and paid up share capital of the company), of the face value of PKR10 each, by the company by Section 88 of the Act read with the Regulations, subject to, inter alia, obtaining the requisite approval from the members of the company from 2 November 2023 to 23 April 2024, or until the buy-back is completed, whichever is earlier.

Thatta Co's AGM will be held on Thursday, 26 October 2023, at 11:00 am at Beach Luxury Hotel, MT Khan Road, Karachi, to seek members approval for the proposed purchase/buy-back of shares.