Karachi, October 26, 2022 (PPI-OT): Cements – Cherat Cement Company Limited

Earnings: Cherat Cement Company Limited (CHCC) announced its financial result for the first quarter FY23, whereby company reported earnings of PKR 1,483mn or PKR 7.63/share compared to last year PKR 1,193mn or PKR 6.14/share, up by +24%y/y. On quarterly basis, company’s profitability is up by +45%, due to higher tax charge taken in previous quarter.

Payout: The Company did not announce any payout along with the result.

Operating performance: For the 1QFY23, Company’s sales recorded a +26%y/y growth to PKR 9.0bn backed by better retention prices, compensating industry wide volumetric slowdown, higher energy and coal prices. On sequential basis, sales are down by 5%q/q. Moreover, company’s gross margins clocked in at 32% up when compared to previous quarter 4QFY23: 29% and 1QFY22: 29%). Interest costs during the quarter settled at PKR 480mn up by +6%q/q on sequential basis, and +61%y/y amid higher interest rates. Effective tax rate for the period came at 30% (additional tax measures announced in budget 2023) compared to 35% in 4QFY23, and 26% during last year same period.

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