Ayesha Mudassar

Revenues of Kohat Cement Company Limited (KOHC) grew by 25%, gross profit by 17%, and after-tax profit by 25% in the first quarter (July-September) of the current fiscal year 2023-24 (1QFY24) compared to the same period of FY23, WealthPK reports. The company posted revenue of Rs11.06 billion and gross profit of Rs3.2 billion in 1QFY24. The profit-after-tax stood at Rs2.2 billion compared to Rs1.7 billion in 1QFY23, resulting in an earnings per share (EPS) of Rs11.25 versus Rs8.89 in 1QFY23.

The profit-before-taxation increased to Rs3.4 billion in 1QFY24 from Rs2.6 billion in 1QFY23, registering a 32% growth.

Analysis of quarterly variations

Quarterly analysis reveals that the second quarter (Oct-Dec) of FY23 contributed the most to the consolidated yearly financials of KOHC. The company made the highest net sales, gross profit and net profits in this quarter. Moreover, KOHC enjoyed profit-making in all four quarters of FY23. In the first quarter (July-September) of FY23, the company posted a net revenue of Rs8.8 billion and a net profit of Rs1.7 billion. In 1QFY23, the cement company reported an EPS of Rs8.89.

In the second quarter, the company posted a net revenue of Rs10.9 billion and a net profit of Rs1.9 billion. In 2QFY23, KOHC posted a quarter-based EPS of Rs9.73, the highest of all quarters. In the third quarter (January-March), the company hit net sales of Rs10 billion and net profit of Rs1.6 billion. In this quarter, the company reported an EPS of Rs8.08. In the recently ended quarter (4QFY23), the company posted net sales of Rs9.1 billion and net profit of Rs457 million.

Company information and prospects

Kohat Cement Company Limited was incorporated in 1980 and is one of the leading cement manufacturing firms in Pakistan. Registered on the Pakistan Stock Exchange with the symbol "KOHC", it has a market capitalisation of Rs38.08 billion. The company witnessed a decline in cement demand arising from inflationary pressures and currency fluctuation in 2023. However, KOHC is determined to work with authorities to overcome these challenges and enhance operational activities.

Industry overview

The cement industry of Pakistan witnessed a surge of 23.5% in total dispatches for the quarter ended September 30, 2023. The rise is mainly due to currency devaluation, which led to significant export volume growth.

Credit: INP-WealthPk