KOHC 3QFY24 Result Review - Lower offtakes lead to profit decline (AKD Off the Analyst's Desk Apr 25, 2024)
AKD, Off the Analyst's Desk
KOHC 3QFY24 Result Review - Lower offtakes lead to profit decline
Kohat Cement Company Limited (KOHC) announced its 3QFY24 financial results earlier today, where the company posted earnings of PkR2.1bn (EPS: PkR10.5), a decline of 7%QoQ, primarily attributable to the lower offtakes. The result marginally exceeded our expectations amidst higher than expected gross margins.
- Company’s topline witnessed an 18%QoQ/15%YoY decline to PkR8.5bn compared to PkR10.4bn in the quarter before. The said quarterly decrease is primarily due to a 18%QoQ fall in the sales volume, dropping to 0.56mn tons from 0.69mn tons in the preceding quarter.
- Gross margins improved to 29.9% from 26.2% in 2QFY24, higher than expected, possibly due to an improved coal mix.
- Other income decreased by 10%YoY to PkR1.1bn, likely due to a decline in avg. KIBOR rates.
- Finance costs clocked in at PkR151mn vs. PkR180mn in preceding quarter, down 16%QoQ, possibly attributed to reduced borrowing and lower effective interest rates.
- Overall, earnings for 9MFY24 accumulated to PkR33.2/sh vs. PkR27.4/sh in SPLY, an increase of 21%YoY, mainly driven by a 2.3xYoY rise in other income.
AKD Research
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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