Karachi, September 05, 2023 (PPI-OT): Cherat Cement Company Limited

Earnings: Cherat Cement Company Limited (CHCC) announced its FY23 result. The Company reported unconsolidated earnings of PKR 4.4bn (EPS PKR 22.67/share), down by 1%y/y. On a quarterly basis, the company reported an earnings of PKR 0.1bn (EPS: PKR 0.48/share) compared to a profit of PKR 1bn (EPS: PKR 5.25/share) in the same period last year.

Dividend/Payout: The Company announced a cash dividend of PKR 3/share in 4qFY23 in addition to PKR 1.5/share announced during 3qFY23.

Operating Performance: During 4qFY23 the Company’s net sales fell to PKR 8.6bn depicting a decrease of 9%y/y. On an annual basis, the Company’s net sales increased to PKR 37.4bn up by +17%y/y. For the quarter, the company’s gross margins plummeted to 21% compared to 26% in the previous quarter. However, average gross margins in FY23 were slightly down to 27% from 28% last year. The company took a tax charge of PKR 1bn during the fourth quarter, due to the imposition of a recent retrospective super tax announced in the budget FY24.