CHCC - 3QFY23 Result Review, (AKD Off the Analyst's Desk Apr 27, 2023)
Cherat Cement Company Limited (CHCC) announced its 3QFY23 result earlier today where the company reported earnings of PkR1.3bn (EPS: PkR6.5) compared to PkR1.6bn (EPS: PkR8.0) in the previous quarter, a decline of 18%QoQ and in line with our expectations. Furthermore, company announced a surprise interim dividend of PkR1.5/sh.
- Net sales clocked in at PkR9.3bn compared to PkR10.4bn in the previous quarter, a decline of 11%QoQ. The said decrease is on the back of fallen sales volumes, which remained down by 13% during the quarter.
- Gross margins of the company settled at 25.9%, contracted by 2.9ppts QoQ compared to 28.7% in the quarter before. Where we believe that an increase in coal prices during the quarter erodes the margins.
- Other Income clocked in at PkR236mn, a mammoth increase of 2.4xQoQ and 14.6xYoY. This increase could possibly be due to exchange gains recorded during the quarter.
- Furthermore, company reported finance cost of PkR415mn compared to PkR521mn in the quarter before, this decline is likely due to the decline in short-term borrowing owing to efficient working capital management during the quarter.
- Overall, 9MFY23 earnings cumulates to PkR4.3bn (EPS: PkR22.2) compared to PkR3.4bn (EPS: PkR17.7) in SPLY, an increase of 25%YoY majorly due to increase in cement prices over the period.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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