Cherat Cement Co Ltd (CHCC) posted earnings of PKR1.85bn (US$5.51m) for the 4QFY25, marking a 116 per cent YoY increase and a 10 per cent rise QoQ. This strong performance brings the company’s full-year FY25 earnings to PKR8.68bn, up 58 per cent YoY. The board declared a final cash dividend of PKR4 per share, bringing the total dividend payout for FY25 to PKR5.50 per share.
According to BMA Research, the earnings growth was primarily driven by improved gross margins, benefitting from lower coal prices, and a reduced effective tax rate. Revenue for the quarter stood at PKR9.7bn, reflecting a modest two per cent YoY increase but a robust 25 per cent QoQ growth, supported by higher cement prices and increased sales volumes.
Total cement dispatches in 4QFY25 were 0.64Mt, down one per cent YoY but up 27 per cent QoQ.
Distribution costs rose to PKR241m, showing a 13 per cent YoY and 18 per cent QoQ increase. Meanwhile, other income surged by 174 per cent YoY and 69 per cent QoQ to PKR450m, mainly due to gains from short-term investments.
Finance costs declined sharply to PKR86m, a drop of 65 per cent YoY and 31 per cent QoQ, attributed to a lower KIBOR rate environment. The company’s effective tax rate for the quarter was 39 per cent, significantly lower than 61 per cent in the same period last year and unchanged from the previous quarter.
Following the commissioning of its Line III clinker production unit, CHCC has expanded its annual production capacity to over 4.5Mt, positioning it for continued growth.
By Abdul Rab Siddiqi, Pakistan
