KOHC Earnings in 3Q 2025
Staff Report:
KARACHI: Kohat Cement Company Limited (KOHC) announced 3QFY25 result on Monday wherein company posted net earnings of Rs2.3bn (EPS Rs11.9) as compared to earnings of Rs2.1bn (EPS Rs10.5) during the same period last year, up by 14%YoY.
The Increase in profitability is mainly due to higher gross margins (up 10ppt) during the period. The result came in-line with our estimate. ▪ During 3QFY25, KOHC’s topline clocked in at Rs8.2bn (down 4%YoY).
The decline is mainly attributed to lower volumetric sales (down 5%YoY) during the quarter. ▪ KOHC’s gross margin clocked in at 40% versus 30% during the same period last year, (up by 10ppt). The sharp increase in margins is due to lower coal cost and decline in grid rates.
Despite ease in inflation, operating cost increased by 30%YoY. Moreover finance cost declined by 60%YoY on the back of lower interest rates during the period.
Other income stood at Rs921mn (down 15%YoY) mainly due to lower return from mutual funds. On sequential basis, earnings declined by 32%QoQ mainly due to 1) Lower volumetric sales (down 14%QoQ) 2) Reduction in cement price and 3) Decline in other income (down 42%QoQ).cement manufacturing
Cumulatively during 9MFY25, earnings increased by 42%YoY on the back of 1) Elevated gross margins and 2) Higher other income,” Sherman Research said.
