Kohat Cement Co's profit rises by 25% YoY

Kohat Cement Co Ltd (KOHC) has announced its financial result for 1QFY23-24 at the Pakistan Stock Exchange (PSX) posting a profit after tax (PAT) of PKR2.230bn (US$7.92m) compared to a PAT of PKR1.785bn in a year ago period up by 25 per cent YoY.

The result, highlights by AHL Research, says that the topline during 1QFY23-24 clocked in at PKR11.064bn, displaying a jump of 25 per cent YoY compared to PKR8.853bn in the year-ago period. This growth in 1QFY23-24 is attributable to an increase in the retention prices coupled with an 11 per cent YoY jump in dispatches of 0.76Mt compared to 0.69Mt.

Other income in 1QFY23-24 surged by 136 per cent to arrive at PKR866m amid a rise in interest income. Finance costs rose 18 per cent YoY to clock in at PKR203m in 1QFY23-24 on higher interest rates.

Another research house (IMS Research) said that Kohat Cement consistently maintains robust gross margins despite cost pressures stemming from rising energy prices. The company has effectively mitigated these cost pressures by increasing cement prices and sourcing cheaper Afghan and local coals, taking advantage of their cost-effectiveness due to proximity to the Afghan border and local mines.

Solar power project
The company has commissioned a 10MW solar power project at its Kohat site in August 2023 and is in the process of installation of another 15MW solar power project.