Kohat Cement’s half-year profit surges 54 percent

KARACHI: Kohat Cement Company Limited’s profit surged 54 percent to Rs2.10 billion in the half-year ended December 31, 2015 on increased sales and other income and decreased finance cost and energy prices, analysts said on Thursday.

The cement manufacturer reported a profit of Rs1.36 billion in the same period a year earlier. 

The earnings per share remained at Rs13.60 as compared to Rs8.84, the company announced at the Pakistan Stock Exchange.

Analysts said the earning beat the market expectations.

The company’s board recommended an interim cash dividend at Rs5/share for the shareholders whose names will appear in the register of members at the close of the business on February 15, 2016.

“Decreases in energy prices coupled with increased sales volume are the primary reasons for the improved gross and net margins during the quarter under review,” said Khurram Shehzad, the company’s secretary.

The company’s second quarter profit rose 69.23 percent.  

Kohat Cement dispatched 1.03 million tons of cement during the six- month period under review, showing an increase of 19.50 percent over the same period of the last year, Shehzad said.

“Growth in domestic cement demand is expected to remain healthy, while exports shall remain under pressure,” he said.

In the half-year period, cement dispatches were 18.22 million tons (local 15.20 million tons and exports 3.02 million tons), up 6.38 percent over the corresponding period of the last year.

Shahzad said the company’s 15-megawatt waste heat recovery power plant will soon become operational. At present, the plant is at the commissioning stage.

The company’s net sales rose 20 percent to Rs7.05 billion in the six months from Rs5.90 billion in the same period last year.

The cost of sales declined 9.42 percentage points to 56.17 percent (of Rs3.96 billion) of the sales from 65.59 percent (or Rs3.87 billion) in the corresponding period. The operating profit surged 56 percent to Rs2.99 billion as compared to Rs1.92 billion.

The finance cost dropped 56 percent to Rs18.75 million from Rs42.01 million. The other income rose two-fold to Rs263.99 million from Rs118.76 million.

The selling and distribution expenses increased two-fold to Rs77.62 million in July-December from Rs34.21 million a year earlier.

Hino Pak profit falls 20pc in Oct-Dec 2015

Hinopak Motors Limited on Thursday reported a net profit of Rs282.99 million for the third quarter ended December 31, 2015, down 20 percent over the same period a year earlier.

The company posted a profit of Rs355.52 million in the same quarter last year. The earnings per share remained at Rs22.82 as compared to Rs28.67 in the corresponding quarter, the company said in a notice issued to the Pakistan Stock Exchange.

The sales rose 33 percent to Rs4.47 billion in Oct-Dec 2015 from Rs3.36 billion in the same period a year ago. The cost of sales was up 2.74 percentage points to 85.82 percent (or Rs3.84 billion) of the sales from 83.08 percent (or Rs2.79 billion) in the same quarter last year.

Profit from operation was steady at Rs424.09 million as compared to Rs403.61 million.

The distribution costs surged 26 percent to Rs116.83 million from Rs92.69 million. The administration expenses increased to Rs95.13 million from Rs89.53 million.

The other income and finance income was reduced 44 percent and 119 percent, respectively, to Rs34.82 million and Rs1.02 million.

In the nine month ended December 31, 2015, the profit-after-tax decreased four percent to Rs820.99 million in the three-month period from Rs854.14 million in the corresponding period last year.

General Tyre’s profit up 91pc to Rs433mln 

The profit of General Tyre and Rubber Company of Pakistan Limited jumped 91 percent to Rs433.48 million for the half-year ended December 31, 2015 due to a significant cut in its finance cost and growing income from affiliates, analysts said on Thursday.

The company earned Rs226.64 million in the same period a year earlier. 

The earnings per share remained at Rs7.25 as compared to Rs3.79, according to the company’s results posted at the Pakistan Stock Exchange

The firm’s net sales were up nearly three percent to Rs4.39 billion in the six months from Rs4.28 billion a year ago. The cost of sales, however, dropped 4.47 percentage points to 77 percent (or Rs3.38 billion) of sales from 81.47 percent (or Rs3.49 billion).

Faizan Ahmed at JS Global Research said a massive decline in input prices (natural and synthetic rubber) helped the firm record strong net profit.

The finance cost fell 63 percent to Rs58.21 million from Rs155.78 million last year. The firm booked income from an associated company at Rs1.36 million, which was seven-fold higher than Rs187,000 last year.

Profit from operations rose 35 percent to Rs685.18 million.

However, administration expenses and other expenses rose seven percent and 86 percent to Rs113.69 million and Rs68.23 million, respectively.