Karachi, Cherat Cement Company Limited (CHCC) has announced its results for the second quarter of the fiscal year 2024, recording its highest ever quarterly earnings. The company's profits surged to PkR1.9 billion, marking a 22% increase from the previous quarter. This significant growth in earnings is primarily attributed to an expansion in gross margins, possibly influenced by a reduction in the weighted average cost of coal.

According to AKD Securities Limited, the company's net sales for 2QFY24 reached PkR10.2 billion, a slight increase from the previous quarter but a 2% decrease year-over-year. The increase in quarterly sales is largely due to higher retention prices. Gross margins for the quarter improved significantly to 34.6%, compared to 30.5% in 1QFY24 and 28.7% in 2QFY23, likely benefiting from the decline in coal prices.

The finance cost for CHCC also saw a reduction, dropping 9.1% quarter-over-quarter to PkR386 million, attributed to decreased borrowing after total debt fell to PkR9.9 billion from PkR15.8 billion in the same period last year. Additionally, other income for the company increased by 194% quarter-over-quarter, reaching PkR142 million, thanks to increased short-term investments.

For the first half of the fiscal year 2024, CHCC posted a profit after tax (PAT) of PkR3.4 billion (PkR17.5 per share), up 12% from the same period last year. This increase is mainly due to a 12% year-over-year rise in gross profits, driven by higher retention prices. Alongside these impressive results, Cherat Cement announced an interim cash dividend of PkR1.5 per share.