Kohat, Kohat Cement Company Limited (KOHC) has announced its financial results for the second quarter of fiscal year 2024, reporting earnings of PKR 2.2 billion, equivalent to an earnings per share (EPS) of PKR 11.4. This performance reflects a steady quarter-over-quarter outcome and a 14% year-over-year increase, primarily supported by a significant rise in other income which compensated for the decline in gross profits. The company's financial metrics align with market expectations, indicating resilience amid fluctuating market conditions.

According to AKD Securities Limited, KOHC witnessed a dip in its sales to PKR 10.4 billion in the quarter, down by 6% quarter-over-quarter and 5% year-over-year. This decline was attributed to a decrease in sales volumes, which fell by 10% from the previous quarter. The company also faced contraction in gross margins to 26.2%, down from 29.2% in the first quarter of FY24, largely due to escalated energy costs, including coal and power.

Despite these challenges, KOHC's other income saw a 39% year-over-year increase to PKR 1.2 billion, bolstered by growth in short-term investments, which stood at PKR 16.8 billion in the first quarter FY24 books compared to PKR 12.3 billion at the end of June 2023. Furthermore, the company benefited from reduced finance costs, which decreased by 11% quarter-over-quarter, thanks to lowered borrowings and more favorable interest rates.

Overall, Kohat Cement's earnings for the first half of FY24 amounted to PKR 22.8 per share, marking a 19% increase from the same period last year. This improvement was notably driven by a more than twofold year-over-year surge in other income, demonstrating KOHC's strategic financial management and its ability to navigate through operational cost pressures.