Kohat Cement Profit Rises 55% in 1HFY25 

Kohat Cement Company Limited (PSX: KOHC) has posted profit after tax (PAT) of Rs. 6.8 billion for 1HFY25.   The company’s financial results show that its profit after tax during 1HFY25 were up 55 percent over earnings of Rs. 4.45 billion reported in 1HFY24. The earnings per share (EPS) for 1HFY25 stood at 35.15 compared to EPS of Rs. 22.74 in the corresponding period of previous fiscal year.  In 2QFY25, earnings stood at Rs. 3. 44 billion (EPS: Rs. 17.59), marking a 55 percent year-on-year (YoY) growth from Rs. 2.22 billion (EPS: Rs. 11.35) in 2QFY24.  In 1HFY25, sales stood at Rs. 20.7 billion, down 4 percent YoY. This decrease in sales was attributed to a 15 percent drop in dispatches compared to the same period last year.   However, in 2QFY25, the topline grew to Rs. 10.6 billion, up 2 percent YoY from Rs. 10.4 billion in 2QFY24. The growth was primarily driven by higher retention prices, despite a 7 percent YoY decrease in dispatches. On a QoQ basis, sales were up 5 percent, supported by a 6 percent rise in dispatches.  Gross margins for 1HFY25 improved significantly to 42.5 percent, up from 27.7 percent in 1HFY24, mainly due to a reduction in Afghan coal prices and higher retention prices. In 2QFY25, gross margins also rose by 1599bps YoY, reaching 42.2 percent.  Selling and distribution expenses saw an 18 percent YoY increase in 1HFY25, amounting to Rs. 101 million. In 2QFY25, these expenses grew by 11 percent YoY and 18 percent QoQ.  Other income surged by 48 percent YoY, totaling Rs. 3.05 billion in 1HFY25, driven largely by an increase in short-term investments, which reached Rs. 30.3 billion by December 2024. In 2QFY25, other income rose by 32 percent YoY and 8 percent QoQ for the same reason.  Finance costs decreased by 45 percent YoY in 1HFY25, amounting to Rs. 210 million, largely due to a reduction in interest rates. In 2QFY25, finance costs also fell by 48 percent YoY and 19 percent QoQ, driven by the same factor.  The effective tax rate in 2QFY25 stood at 36.5 percent, up from 33.7 percent in 2QFY24.  *With help from result review by brokerage house Arif Habib Limited.