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KOHC profit jumps 55% to Rs1.64 billion in Q3

KARACHI: The profit of Kohat Cement Company Limited (KOHC) sharply increased 55 percent to reach Rs1.64 billion translating into the earnings per share (EPS) of Rs8.19 during the third quarter of fiscal year 2022.
This took the earnings to Rs4.63 billion (EPS: Rs23.05) during the first nine months of fiscal year 2022 compared with Rs1.47 billion (EPS: Rs12.60) during the corresponding period of last year.

The company posted a profit of Rs1.05 billion (EPS: Rs5.27) during the third quarter of last fiscal year.
The topline of the company during the third quarter of fiscal year 2022 clocked-in at Rs8.57 billion, displaying a growth of 28 percent.

“The growth in the earnings came due to a surge in retention prices which offset the impact of a 6 percent dip in the offtake to 929,000 tonnes,” Misha Zahid at Arif Habib Limited said.

On a quarterly basis, the revenue went up 4 percent amid augmented prices while offtake remained stable with a mere 1 percent decline on a year-on-year basis.

During the nine months of the fiscal year 2022, KOHC’s sales showed a jump of 32 percent as a result of massive hikes in retention prices which counterbalanced the impact of a 4 percent downturn in offtake to 2.72 million tonnes,
The gross margins arrived at 29.2 percent during the third quarter in contrast to 25.9 percent in the last year led by a massive improvement in retention prices which offset the impact of higher coal prices, rupee depreciation, and augmented energy tariffs.

On a sequential basis, margins compressed slightly from 30.2 percent in the second quarter of the fiscal year 2022 led by higher average coal prices which could not be passed on completely through a hike in retention prices.
“This took the margins during the nine months to 30.7 percent, compared with 24.3 percent during the same period last year owed to effective price hikes which remained sufficient to offset the impact of augmented cost pressures emanating from adverse movement in coal, rupee-dollar parity and energy tariff,” Misha added.

The finance costs of the company rose to Rs144 million during the quarter under review, up 21 percent on a year-on-year basis and 22 percent on a quarterly basis on the back of augmented interest rates.

The company booked effective taxation at 28 percent during the third quarter of fiscal year 2022, compared with 29 percent during the same period of last year.

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