The revenue of Kohat Cement Company Limited (KOHC) grew by 18.4%, gross profit by 6.3% and after-tax profit by 15.9% in the fiscal year ending June 30, 2023 compared to FY22, WealthPK reports. The company posted revenue of Rs38.9 billion and gross profit of Rs10.4 billion in FY23. The profit-after-tax stood at Rs5.8 billion compared to Rs5.02 billion in FY22, resulting in earnings per share (EPS) of Rs28.9 versus Rs25.01 in FY22. The profit-before-taxation increased to Rs10.4 billion in FY23 from Rs8.9 billion in FY22, registering a 17.3% growth year-on-year.

KOHC-Analysis of Quarterly Variations

A quarterly analysis reveals that the second quarter (October-December) of FY23 contributed the most to the consolidated yearly financials of KOHC. The company made the highest net sales, gross and net profits in this quarter.
KOHC enjoyed profit-making in all the 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 (October-December), the company posted a net revenue of Rs10.9 billion and a net profit of Rs1.9 billion. In 2QFY23, KOHC posted the highest quarter-based EPS of Rs9.73 In the third quarter (January-March), the company hit net sales of Rs10 billion and net profit of Rs1.6 billion. In 3QFY23, the company reported EPS of Rs8.08. The recently-ended quarter (4QFY23) posted net sales and net profit of Rs9.1 billion and Rs457 million, respectively.

Company Information and Future Prospects

Kohat Cement Company Limited was incorporated in 1980 and is one of the leading cement manufacturers in Pakistan. Registered on Pakistan Stock Exchange with the symbol ‘KOHC’, the company has a market capitalisation of Rs33.1 billion. The company witnessed a decline in cement demand due to inflationary pressures and currency fluctuations. However, the KOHC is determined to work with the authorities to overcome these challenges and enhance operational activities.

Industry Review

Pakistan’s cement industry witnessed a decline of 15.7% in total dispatches for the year ended June 30, 2023 compared to the previous year. A dip of 13.13% in export dispatches was attributable to the high cost of production and increased sea freights. Unprecedented rainfalls and floods during the first quarter of FY23 significantly reduced local dispatches.

Credit: Independent News Pakistan (INP)