Cherat Cement Company Ltd (CHCC) reported a net profit after tax (NPAT) of PKR1.7bn (US$6.19m) for the 4QFY26, marking a 23 per cent increase quarter-on-quarter but a six per cent decline YoY. Full-year NPAT stood at PKR7.3bn, down 16 per cent YoY, according to a report prepared by IMS Research.
The company announced a final cash dividend of PKR 4.0 per share, slightly above market expectations, bringing the annual payout to PKR 5.5 per share.
Key Highlights
•Sales: Net sales rose 13 per cent QoQ to PKR8.9bn, though down 9 per cent YoY, driven by higher dispatches and retention prices.
•Margins: Gross margins contracted to 27 per cent, below estimates, reflecting elevated coal and transport costs.
•Finance Costs: Fell 22 per cent QoQ to PKR 63m due to reduced borrowings.
•Taxation: Effective tax rate declined to 27 per cent, compared to 39 per cent last year.
Despite margin pressures, CHCC retains its edge as a low-cost producer thanks to its strategic KPK location with lower royalty rates. Analysts note the company could benefit significantly if cross-border trade resumes, a scenario supported by past precedent. Pakistan's cement exports to Afghanistan were suspended in mid-October last year.
By Abdul Siddiqi, Pakistan
