Kohat Cement Company Limited’s financial results for the 2nd quarter and half year ended December 31, 2012

Karachi, January 29, 2013 (PPI-OT): We have to inform you that the Board of Directors our company in their meeting held on January 29, 2013 at 11:00 A.M. at Head Office, 37-P, Gulberg II, Lahore, recommended the following:

(i) Cash Dividend                                  Nil

(ii) Bonus Shares                                  Nil

(iii) Right Shares                                 Nil

(iv) Any Other Entitlement/ Corporate Action       Nil

(v) Any Other Price-Sensitive Information          Nil

The financial results of the Company are as follows:

2012

2011

July to

October to

July to

October to

December

December

December

December

Rupees

Rupees

Rupees

Rupees

Sales-net

5,068,322,160

2,964,807,891

4,074,167,523

2,372,677,711

Cost of goods sold

3,142,204,824

1,765,152,428

3,025,470,624

1,663,265,412

————-

————-

————-

————-

Gross profit

1,926,117,336

1,199,655,463

1,048,696,899

709,412,299

Selling and distribution cost

24,812,037

12,416,959

21,362,046

12,492,805

Administrative and general expenses

44,721,629

22,379,490

30,677,599

16,210,892

Other operating expenses

85,734,130

54,727,950

34,555,903

27,240,579

Other operating Income

(6,361,205)

(4,353,643)

(16,934,795)

(6,818,065)

————-

————-

————-

————-

148,906,591

85,170,756

69,660,753

49,126,211

————-

————-

————-

————-

Operating profit

1,777,210,745

1,114,484,707

979,036,146

660,286,088

Finance cost

156,072,833

71,274,885

340,523,996

160,765,094

————-

————-

————-

————-

Profit before taxation

1,621,137,912

1,043,209,822

638,512,150

499,520,994

Taxation

442,171,204

340,354,788

83,788,920

72,881,365

————-

————-

————-

————-

Profit after taxation

1,178,966,708

702,855,034

554,723,230

426,639,629

————-

————-

————-

————-

Earnings per share
(basic and diluted)

9.16

5.46

4.31

3.31

DIRECTORS’ REVIEW

It gives us great pleasure to present the interim financial information of your company duly reviewed by the auditors for the half year ended 31st December 2012.

Market Review

During the first half of FY 2012-13 local dispatches of cement in Pakistan have increased by

7.6 1% while exports have declined by 5.28% compared to the corresponding period last year.

Overall growth in sales volume in the country for the period has been recorded at 3.87%. The sales volumes of your company during the half-year have increased by 7.32% which is well above the industry average.

Production and Sales Volumes

During the half year ended 31 December 2012, clinker production increased by 23.71% and 44.94% in the second quarter of FY 2012-13 as compared with the corresponding period last year.

Dispatches have also shown a growth of 7.32% during the half year under review and 12.90% in the second quarter as compared with corresponding period last year.

Production and sales volumes of the Company during the period were as follows:

October-DecemberJuly-December
2012201120122011
(Quantities in tons)(Quantities in tons)
Clinker Production

538,501

371,522

881,811

712,788

Cement Dispatches

487,659

431,918

842,129

784,633

Financial Performance

Improved production with increased sales volumes has helped your Company to earn a net profit of Rs. 1.178 billion after accounting for depreciation of Rs. 190.2 million and provision for taxation of Rs. 442.1 million. This represents an EPS of Rs. 9.16 for the period. Financial results are summarized below:

October-December

July-December

2012

2011

2012

2011

(Rupees in thousands)

(Rupees in thousands)

Net Sales Revenue

2,964,807

2,372,677

5,068,322

4,074,167

Operating Profit

1,114,484

660,286

1,777,210

979,036

Finance Cost

71,274

160,765

156,072

340,523

Profit after Taxation

702,855

426,639

1,178,966

554,723

Earnings per share (Rs.)

5.46

3.31

9.16

4.31

Debt Obligations

The Company is current with its debt obligations. In addition to the scheduled payments, Company has also pre-paid long term debts to the extent of Rs. 200 million during the period under review.

Future outlook

Domestic demand of cement is expected to remain stable. Management will mainly focus on cost effective production methods to improve the profitability of the Company.

Acknowledgments

While placing on record our thanks to all the stakeholders, we look forward to their continued support in future. The employees of the Company deserve a special vote of thanks for their hard work, dedication and commitment.

For more information, contact:
Kohat Cement Company Limited
Head Office: 37-P, Gulberg II,
Lahore-Pakistan
UAN: +92-42-11-111-KCCL, (5225),
Fax: +92-42-3676-4084, 3587-4990,
Web: www.kohatcement.com

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