Kohat Cement Co Ltd has announced its financial results for the first quarter of FY26, reporting earnings of PKR2.94bn (US$10.42m), or an earnings per share (EPS) of PKR3.20, down 14 per cent YoY. This compares with PKR 3.44bn, or PKR3.74 EPS, recorded in the same quarter last year, according to AHL Research.
The decline in earnings was mainly driven by lower gross margins during the quarter. Although sales rose two per cent YoY to PKR10.3bn, the improvement was offset by a 13–14 per cent drop in retention prices.
Cement dispatches increased 18 per cent YoY to 0.7Mt, supported by a 12 per cent rise in domestic dispatches and a 4.2 per cent increase in exports. However, higher royalty costs on raw materials and reduced retention prices weighed on profitability.
Gross margins fell to 33.9 per cent from 42.8 per cent a year earlier, primarily due to an increase in royalty charges from PKR250/t to PKR350/t. Selling and distribution expenses rose six per cent YoY, in line with higher dispatch volumes.
Other income provided some relief, rising two per cent YoY to PKR1.49bn, largely driven by gains from short-term investments. The company’s cash and short-term investments grew to PKR35bn in 1QFY26, compared with PKR28bn in the same period last year.
Finance costs declined 66 per cent YoY to PKR40m, supported by falling interest rates. The effective tax rate inched up to 34.4 per cent in 1QFY26 from 33.4 per cent in the corresponding period of the previous fiscal year.
By Abdul Rab Siddiqi, Pakistan
