Karachi: Kohat Cement Company Ltd. (KOHC) today announced record-breaking financial results for FY24, with earnings reaching an all-time high of PkR8.9 billion, equivalent to an earnings per share (EPS) of PkR45.4. The company also revealed plans for a second share buyback, proposing to repurchase 12 million shares, which represents approximately 6.1% of its total outstanding shares.

According to AKD Securities Limited, the FY24 results mark a significant milestone for KOHC, as the company not only achieved the highest annual earnings in its history but also saw a substantial year-over-year increase in earnings for the fourth quarter. The fourth quarter alone brought in PkR2.4 billion (EPS: PkR12.2), compared to PkR459 million (EPS: PkR2.3) in the same period last year, an increase primarily attributed to the absence of the super tax impact that affected the previous year’s figures.

Despite a 5% year-over-year decline in topline revenue to PkR8.7 billion, the company’s financial health was bolstered by improved gross margins, which rose to 31.8% from 27.1% in the prior year, thanks to a more efficient coal mix. Other income also saw a significant boost, increasing by 76% year-over-year to PkR1.3 billion, largely driven by a 48% increase in short-term investments. Additionally, reduced borrowing contributed to a 38% decrease in finance costs.

The announcement of the share buyback, set to occur between October 2023 and April 2025, follows a previous buyback completed in August 2022, where 5 million shares were repurchased. This ongoing strategy underscores KOHC’s commitment to delivering value to its shareholders and reflects confidence in the company’s financial stability and growth prospects.