Islamabad, Feb 20: Kohat Cement Company Limited (PSX: KOHC) has reported a profit after tax (PAT) of Rs. 6.8 billion for the first half of FY25 (1HFY25), reflecting a 55 percent increase compared to Rs. 4.45 billion in the same period last year. The company’s earnings per share (EPS) rose to Rs. 35.15, up from Rs. 22.74 in 1HFY24. For 2QFY25, the company recorded a PAT of Rs. 3.44 billion (EPS: Rs. 17.59), marking a 55 percent year-on-year (YoY) increase from Rs. 2.22 billion (EPS: Rs. 11.35) in 2QFY24.
Despite the strong bottom-line performance, sales for 1HFY25 declined by 4 percent YoY to Rs. 20.7 billion, attributed to a 15 percent drop in dispatches. However, in 2QFY25, sales grew by 2 percent YoY to Rs. 10.6 billion, driven by higher retention prices, despite a 7 percent drop in dispatches. On a quarter-on-quarter (QoQ) basis, sales were up 5 percent, supported by a 6 percent increase in dispatches.
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The company’s gross margins improved significantly, reaching 42.5 percent in 1HFY25, up from 27.7 percent in 1HFY24, primarily due to lower Afghan coal prices and improved retention prices. In 2QFY25, gross margins rose by 1599bps YoY to 42.2 percent. Selling and distribution expenses grew by 18 percent YoY to Rs. 101 million in 1HFY25, while 2QFY25 saw an 11 percent YoY and 18 percent QoQ increase.
A 48 percent surge in other income was recorded in 1HFY25, reaching Rs. 3.05 billion, primarily due to higher short-term investments, which stood at Rs. 30.3 billion by December 2024. In 2QFY25, other income increased by 32 percent YoY and 8 percent QoQ.
Finance costs fell by 45 percent YoY in 1HFY25, amounting to Rs. 210 million, largely due to lower interest rates. A similar trend was observed in 2QFY25, with finance costs declining by 48 percent YoY and 19 percent QoQ.
The effective tax rate in 2QFY25 rose to 36.5 percent, up from 33.7 percent in 2QFY24.Kohat Cement’s profitability surge, driven by improved margins, cost control, and investment income, underscores the company’s resilience amid fluctuating market conditions.
