AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: In a recent earnings preview, Cherat Cement Company Ltd (CHCC) and Kohat Cement Ltd (KOHC) are projected to report strong financial gains for the fourth quarter of the fiscal year 2025. Analysts from JS Global anticipate earnings per share of Rs10.9 for CHCC and Rs13.7 for KOHC, marking an increase of 2.5 times and 6% year-over-year, respectively.
The expected growth in earnings is primarily attributed to improved gross margins, which are predicted to rise by 9.7 percentage points for CHCC and 8.1 percentage points for KOHC. These gains are driven by stronger retention prices, reduced coal costs, and ongoing cost-efficiency initiatives.
CHCC is likely to announce a final cash dividend of Rs6 per share, bringing the total payout for the fiscal year 2025 to Rs7.5 per share. On the contrary, no dividend is anticipated from KOHC for this period.
Despite recent increases in government-imposed royalties in Khyber Pakhtunkhwa, both companies continue to offer some of the highest gross margins in the industry, according to the report. JS Global maintains a positive outlook on both CHCC and KOHC, highlighting their robust financial performance and resilience in the face of external challenges.