Cherat Cement reported profits up by 3% in 1QFY23-24

Cherat Cement Co Ltd (CHCC), subsidiary of Gulham Faroque Group, has announced its financial results for the 1QFY23-24 ended 30 September 2023. It reported an increase in profit after tax to PKR1.53bn (US$5.47m) from PKR1.48bn earned in the corresponding period last year. This reflects a growth of 3.4 per cent on a YoY basis, according to CHCC financial results posted on the Pakistan Stock Exchange on 23 October. 

The substantial increase in profitability can be attributed to lower taxation, higher sales volume, and increased cement prices, said Spectrum Securities Ltd.

The company’s net sales increased by 11.3 per cent to PKR10.07bn from PKR9.04bn during this period. It incurred a higher distribution cost of PKR163m against PKR130m during this period, and administrative expenses also increased from PKR128m to PKR105m in 1QFY22-23. Its bank borrowing cost reached PKR424m during this period.