Cherat Cement Limited (CHCC) has reported a profit of Rs3.21 billion in the last fiscal year. This is a stark increase from last year when it suffered a loss of Rs1.89bn.
This swing in bottom-line in FY21 is due to improved dynamics in the construction sector, higher retention price and falling finance cost.
During the period under review, the company witnessed robust growth in topline as it went up by 47.5% YoY to Rs25bn due to higher domestic sales, higher retention price to PKR324/bag amid higher MRP and no discounts being offered by the company, a report by Darson Securities said. Resultantly, the gross margins inflated from 2% to 27% during FY21.
On the cost front, the distribution and administrative expenses surged by 18.6% and 7.2% YoY to stand at Rs429mn and Rs291mn, respectively.
Meanwhile, the finance cost of the company dropped by 40% YoY to Rs1.52bn on the back of de-leveraging of debt (short-term) coupled with a lower interest rate.
In conjunction with financial results, the company offered a final cash dividend at Rs1.25 per share i.e., 12.50%.
