CHCC_2QFY24 Result Review —Highest quarterly profits amid margins expansion (AKD Off the Analyst's Desk Feb 16, 2024)
CHCC: 2QFY24 Result Review —Highest quarterly profits amid margins expansion
Cherat Cement Company Limited (CHCC) announced their 2QFY24 result where the company posted highest ever quarterly earnings of PkR1.9bn (EPS: PkR9.6) vs. PAT of PkR1.5bn (EPS: PkR7.9) in the quarter before, up 22%QoQ. The said quarterly earnings growth is majorly attributable to the gross margins expansion, possibly due to lower weighed average cost of coal during the period.
- Net Sales clocked in at PkR10.2bn for 2QFY24 (↑1%QoQ/↓2%YoY). The quarterly increase is mainly driven by higher retention prices.
- Gross margins improved to 34.6% vs. 30.5%/28.7% for 1QFY24/2QFY23, respectively, where we believe decline in weighted average coal prices to have positively impacted margins.
- Finance cost of the company reported at PkR386mn vs. PkR425mn in the previous quarter, down 9.1%QoQ. Where the decline is due to reduced borrowing as total debt decreased to PkR9.9bn in 1QFY24 accounts from PkR15.8bn in SPLY.
- Other Income witnessed an increase of 194%QoQ to clock in at PkR142mn vs. PkR48mn in the previous quarter, owing to increased ST investments.
- Overall, this takes 1HFY24 PAT to PkR3.4bn (PkR17.5/sh) against PkR3.04bn in SPLY, up by 12%YoY. The said increase is mainly attributed to a 12%YoY increase gross profits amid higher retention prices.
- Alongside the results, company announced an interim cash dividend of PkR1.5/sh.
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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