Karachi: Cherat Cement Company Ltd. (CHCC) has reported a rise in earnings for the first quarter of fiscal year 2027, achieving a profit of PkR2.2 billion, an increase of 6% compared to the same period last year. The improvement is attributed to higher other income and a reduction in finance costs. On a sequential basis, the company's profitability rose by 28% from PkR1.7 billion in the fourth quarter of fiscal year 2026.

According to AKD Securities Limited, the company's earnings exceeded expectations, primarily due to higher-than-anticipated gross margins. The revenue for the quarter increased by 2% year-over-year to PkR10.5 billion, driven by a substantial 17% increase in local retention prices. This increase in revenue was able to offset a 17% decline in total offtakes, which was impacted by the absence of exports following the closure of the Afghan border.

Despite these gains, the company's gross margins saw a slight contraction to 35.8%, down from 36.3% in the same period last year. This contraction was primarily due to increased coal prices, which have exerted pressure on the company's cost structure.