Kohat Cement Co Ltd (KOHC) announced its financial results for the 2QFY24-25 and 1HFY24-25 on the PSX’s website on 20 February. Sales grew to PKR10.6bn In the 2QFY24-25, marking a two per cent YoY increase from PKR10.4bn in the 2QFY23-24. Higher retention prices primarily drove the growth despite a seven per cent YoY decrease in dispatches.
Selling and distribution expenses increased 11 per cent YoY in the 2QFY24-25, while finance costs fell by 48 per cent YoY. The effective tax rate in the 2QFY24-25 stood at 36.5 per cent, up from 33.7 per cent in the 2QFY23-24. Other income rose by 32 per cent YoY.
In the 2QFY24-25 earnings remained at PKR3.446bn, marking a 55 per cent YoY growth from PKR2.224bn in the 2QFY23-24.
First-half FY24-25 results
The company reported a 55 per cent YoY increase in earnings to PKR6.885bn, compared to PKR4.45bn in the same period of the previous year.
The result highlights commentary from AHL Research, which revealed that KOHC sales in the 1HFY24-25 were recorded at PKR20.7bn, reflecting a four per cent YoY decline. This decrease in sales was attributed to a 15 drop in dispatches compared to last year.
Gross margins for the 1HFY24-25 improved significantly to 42.5 per cent, up from 27.7 per cent in the 1HFY23-24, mainly due to reduced Afghan coal prices and higher retention prices.
Selling and distribution expenses increased 18 per cent YoY in the 1HFY24-25, amounting to PKR101m. Finance costs in the period decreased by 45 per cent YoY to PKR210m, largely due to a reduction in interest rates. Other income surged by 48 per cent YoY, totalling PKR3.056bn in the 1HFY24-25, driven largely by an increase in short-term investments, which reached PKR30.3bn by December 2024.
by Abdul Rab Siddiqi, Pakistan
