Cherat Cement Co Ltd (CHCC) reported strong financial results for the third quarter on 29 April at the Pakistan Stock Exchange (PSX). The company achieved a profit of PKR1.7bn (US$6m), an increase of 35 per cent compared to PKR1.2bn in the same period last year. This result brings CHCC’s net profit after tax (NPAT) to PKR6.8bn, a 47 per cent rise YoY.
The nine months’ sales revenue stood at PKR28.07bn, down from PKR28.93bn during this period, or -3 per cent YoY.
According to a review report by IMS Research, CHCC continues to show solid profitability despite a decline in export volumes this quarter. There is potential for improved volumes if relations between Pakistan and Afghanistan strengthen. However, the company’s significant dependence on gas (which accounts for 50 per cent of its power mix) is concerning, especially as the government plans to raise fuel prices under IMF directives. On a positive note, CHCC’s strong cash position of PKR8.6bn provides opportunities to invest in alternative energy sources.
By Abdul Rab Siddiqi, Pakistan
