Kohat Cement Posts Highest Ever Quarterly Profit in Q1 FY25

Kohat Cement Company Limited (KOHC) has released its financial results for the first quarter of FY25, reporting a profit after tax of Rs. 3,439 million (EPS: Rs. 17.56), compared to Rs. 2,229 million (EPS: Rs. 11.38) in the same period last year, reflecting a year-on-year increase of 54 percent.

This marks the highest-ever quarterly profit achieved by the company, according to Arif Habib Limited.

In Q1 FY25, the topline reached Rs. 10,084 million, compared to Rs. 11,064 million in the same period last year, reflecting a decline of 9 percent YoY. This decrease is primarily due to a reduction in dispatches, which totaled 595K tons, representing a 22 percent YoY decrease.

Gross margins rose by 14 percentage points YoY to reach 43 percent in Q1 FY25. Additionally, on a QoQ basis, gross margins improved by 11 percentage points. This is the highest gross margin since Q3 FY17. The rise in gross margins is attributed to higher retention prices and better coal inventory management.

Distribution expenses in Q1 FY25 increased by 28 percent YoY, settling at Rs. 46 million compared to Rs. 36 million during the same period last year, on account of elevated freight charges amid the axle load factor.

Other income experienced a YoY increase of 70 percent, reaching Rs. 1,471 million in Q1 FY25, primarily due to elevated earnings from short-term investments.

Finance costs in Q1 FY25 reduced by 43 percent YoY to Rs. 116 million compared to Rs. 203 million during the same period last year, amid a decline in interest rates.

The company booked effective taxation at 33 percent in Q1 FY25 compared to 36 percent in Q1 FY24.

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