Posted by: KSEStocks News
Post Date: April 26, 2024
Cherat Cement Company Limited (CHCC) announces Q3 financial results
AAH Research has just released an update on CHCC’s recent quarterly results. Here are the important points from the CHCC earnings announcement:
Decline in Profit After Tax (PAT)
- CHCC announced its 3QFY24 financial result, reporting a PAT of approximately PKR 1.24 billion, with an EPS of PKR 6.4.
- The PAT slid down by 33% sequentially and 2% on a yearly basis.
Contraction in Topline
- The firm’s topline witnessed a contraction of 15% QoQ (Quarter-over-Quarter) and 7% YoY (Year-over-Year), standing at PKR 8.64 billion compared to PKR 10.2 billion in the previous quarter and PKR 9.2 billion in the same period last year.
- Dispatches in the northern region decreased by approximately 12% QoQ and 22% YoY, contributing to the overall decline.
- The reduction in the topline was attributed to demand contraction, which was influenced by the election year.
Impact on Gross Margins
- Gross margins experienced a 5% decline on a sequential basis.
- This margin contraction is believed to be due to high input costs. However, a clearer understanding of the reasons behind the margin contraction will be available after the transmission of the quarterly report.
Increase in Selling and Distribution Costs
- Selling and distribution costs surged by 19% QoQ and 25% YoY.
- This increase was driven by the axle load regime, resulting in higher distribution costs.
| Financials | 3QFY24 | 2QFY24 | QoQ% | 3QFY23 | YoY | 9MFY24 | 9MFY23 | YoY |
|---|---|---|---|---|---|---|---|---|
| Revenue (PKR mn) | 8,640 | 10,220 | -15% | 9,299 | -7% | 28,931 | 28,756 | 1% |
| Cost Of Sales (PKR mn) | 6,081 | 6,685 | -9% | 6,892 | -12% | 19,765 | 20,463 | -3% |
| Gross Profit (PKR mn) | 2,559 | 3,535 | -28% | 2,407 | 6% | 9,166 | 8,293 | 11% |
| Selling And Distribution Expenses | 209 | 175 | 19% | 162 | 29% | 547 | 437 | 25% |
| Administrative Expenses (PKR mn) | 112 | 130 | -14% | 115 | -2% | 370 | 324 | 14% |
| Other Income (PKR mn) | 139 | 142 | -1% | 236 | -41% | 329 | 360 | -9% |
| Other Operating Expenses (PKR mn) | 112 | 153 | -27% | 105 | 6% | 388 | 336 | 15% |
| Profit Before Interest And Tax | 2,266 | 3,219 | -30% | 2,260 | 0% | 8,190 | 7,557 | 8% |
| Finance Cost (PKR mn) | 321 | 386 | -17% | 415 | -23% | 1,132 | 1,416 | -20% |
| Profit Before Taxation (PKR mn) | 1,944 | 2,833 | -31% | 1,846 | 5% | 7,058 | 6,142 | 15% |
| Taxation (PKR mn) | 700 | 964 | -27% | 573 | 22% | 2,412 | 1,831 | 32% |
| Profit After Tax (PKR mn) | 1,244 | 1,868 | -33% | 1,272 | -2% | 4,645 | 4,310 | 8% |
| Earnings Per Share (EPS) | 6.4 | 9.62 | 6.55 | 23.9 | 22.2 | |||
| Dividend Per Share | 0 | 1.5 | 1.5 | 1.5 | 1.5 | |||
| Margins | 3QFY24 | 2QFY24 | QoQ% | 3QFY23 | YoY | |||
| Gross Margin | 30% | 35% | 26% | 32% | 29% | |||
| EBIT Margin | 26% | 31% | 24% | 28% | 26% | |||
| EBT Margin | 23% | 28% | 20% | 24% | 21% | |||
| Net Margin | 14% | 18% | 14% | 16% | 15% | |||
| Effective Tax Rate (ETR) | 3QFY24 | 2QFY24 | QoQ% | 3QFY23 | YoY | |||
| ETR | 36% | 34% | 31% | 34% | 30% |
Disclaimer
The information in this article is based on research by AAH Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.
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