Kohat Cement Limited (KOHC) announced its 1HFY17 financial results today, wherein the company recorded bottom line of PKR2.19bn (EPS: PKR14.17), up by 4% YoY as compared to PKR2.10bn (EPS: PKR13.60) recorded in SPLY. In addition to the financial results, the company also declared a second interim cash dividend of PKR8/share, taking cumulative 1HFY17 dividend to PKR12/share.
During 1HFY17, topline of the company remained relatively flat (up 2% YoY) at PKR7.17bn, mainly on the back of marginal volumetric growth of 3% YoY (+6%YoY in local sales, -21%YoY in exports). However, gross margin expanded by 300bps to 47% against 44% recorded in the SPLY backed by the lower power generation cost (WHPP came online in Jun’16).
On a sequential basis, 7% QoQ volumes accretion and favorable sales mix resulted in 24% QoQ rise in net sales to PKR3.97bn against PKR3.19bn posted in previous quarter, while gross margin witnessed decline of 200bps to 46% against 48% posted in the previous quarter due to higher coal and FO prices.
Resultantly, profit after tax (PAT) of the company grew 21% QoQ to PKR1.20bn (EPS: PKR7.76) in 2QFY17 versus PKR992mn (EPS: PKR6.42) recorded in the previous quarter.
