Cherat Cement (CHCC) has recently uploaded its financial results to the Pakistan Stock Exchange (PSX) website. The company reported a 2QFY23-24 net profit after tax (NPAT) of PKR1.9bn (US$m12.2m), up 20 per cent YoY and 22 per cent QoQ. This result takes 1HFY23-24 NPAT to PKR3.4bn, up 12 per cent YoY. The positive result was possible due to increased gross margin and other income as well as a cut in financial costs during the three and six months.
The company posted net sales of PKR20.29bn in 1HFY23-24. Finance costs clocked in at PKR811m, reflecting a 19 per cent decline over last year's period. But, distribution expenses rose by 23 per cent and administrative expenses by 24 per cent YoY during this period.
According to IMS Research, CHCC has delivered an impressive performance backed by robust gross margins in the face of rising cost pressures. Nevertheless, the company will continue to face headwinds as the recently-notified gas price hike will again hit profitability.
