CHCC’s 4Q FY25 Earnings Double as Margins Expand

Cherat Cement Company Ltd. (CHCC) has announced its results for the fourth quarter of FY25, and the numbers show a strong comeback.

Profits more than double

The company earned PKR 1.8 billion in profit during 4QFY25, compared to PKR 854 million in the same period last year. That’s an increase of 116%. Earnings per share (EPS) stood at PKR 9.51, while shareholders will also receive a final cash dividend of PKR 4.0 per share, taking the full-year payout to PKR 5.5 per share.

What drove the growth?

• Better Margins: Gross margins improved to 32.6% (from 28.1% last year), thanks to falling international coal prices and slightly higher cement prices.
• Lower Costs: Finance costs dropped by 66% YoY because of reduced borrowings and lower interest rates.
• Higher Other Income: CHCC made more money from short-term investments, which jumped almost 4x compared to last year.
• Tax Relief: The effective tax rate fell to 38.7% from 60.6% last year, as the burden of super tax eased.

Revenue trends

While revenue grew slightly by 2% YoY to PKR 9.7bn, sales volumes were down 1.3%. This shows that higher cement prices, not volumes, supported revenue.

Full-year performance

For FY25, CHCC’s earnings rose 58% YoY to PKR 8.7bn (EPS: 44.68) versus PKR 5.5bn (EPS: 28.31) last year.

Outlook

Analysts remain positive on CHCC. With lower royalty rates in KPK, higher cement prices, and cost savings from cheaper coal and reduced finance costs, the company looks set for further earnings growth.

CHCC has turned in a solid performance, with profits more than doubling and margins expanding. The mix of cost savings, smart investments, and pricing power puts the company in a strong position heading into FY26.

Source: AKD Securities Limited

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