Cherat Cement (CHCC) reported net profit after tax (NPAT) of PKR1.2bn (US$4.32m) in 3QFY23-24, down 33 per cent QoQ and flat sequentially. This brings the 9MFY23-24 NPAT to PKR4.6bn, up 12 per cent YoY. Earnings per share reached PKR6.40 in the 3QFY23-24 and PKR23.90 in hte 9MFY23-24.
In quantitative terms, the company's total sales volume dropped by 11 per cent (1.974Mt), with domestic sales declining by 14 per cent and exports rising by 18 per cent from last year.
Operating performance sales revenue of the company increased by a modest one per cent despite a reduction in cement dispatches, mainly due to increased sales prices as an adjustment to higher input costs.
Furthermore, the cost of sales decreased by three per cent despite a 15 per cent decline in clinker production. The company has implemented measures to enhance operational efficiency by optimising the coal and power mix to offset the increasing production costs. There was a 20 per cent decrease in finance costs mainly due to scheduled and early repayments of long-term loans made during the period and lower working capital requirements. Tax expenses during the period increased primarily due to the enactment of a higher rate of super tax charge.
Exports surge
Pakistan's cement industry saw domestic demand for cement decrease by four per cent during the nine months ending 31 March 2024. However, exports surged by 68 per cent, driven mainly by an 80 per cent rise in sea exports. Furthermore, exports to Afghanistan saw a notable improvement of 34 per cent. As a result, the overall industry grew by three per cent during 9MFY23-24.
