Cherat Cement Co recorded a net profit after tax of PKR1.4bn (US$4m) for the third quarter of fiscal year 2026, representing a 30 per cent decrease from the previous quarter and a 16 per cent drop compared to the same period last year. This quarterly performance contributed to a nine-month net profit of 5.5 billion rupees, which is 19 per cent lower than the previous year.
Net sales for the quarter fell to PKR7.9bn as cement dispatches declined by 22 per cent due to the closure of the Afghan border and slower activity during Ramadan. Profit margins were further pressured by rising coal prices and higher royalties linked to geopolitical tensions, though a reduction in borrowings and lower interest rates helped decrease finance costs by 34 per cent.
The company is now pursuing several strategic initiatives pending shareholder approval in June 2026. These plans include a share buyback of up to four per cent of its capital, a PKR300m investment in Cherat Packaging Ltd, and a move into the mining industry through a joint venture consortium. While the current quarter faced significant headwinds, the company maintains its position as a cost-effective producer and stands to gain from any potential reopening of cross-border trade routes.
By Abdul Rab Siddiqi, Pakistan
