Categories: Financials

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%

Source: PSX

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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