Cherat Cement Company Limited (CHCC) is expected to report a profit after tax of PKR 2.19 billion (EPS: PKR 11.29) for the first quarter of FY27, reflecting an increase of 4.7% year-on-year and 26.3% quarter-on-quarter, driven by higher local cement dispatches and improved retention prices, according to AL Habib Capital Markets.

The research house expects net sales to grow 5.8% year-on-year and 22.3% quarter-on-quarter, supported by stronger pricing. However, gross margin is projected to decline to 34.9%, down 1.4 percentage points from the previous year, amid higher coal and transportation costs.

AL Habib Research noted that CHCC’s local dispatches rose 7% year-on-year to 582,308 tonnes during 1QFY27, while its share in the northern market stood at 6.5%. Capacity utilisation was reported at 51.5%.

The brokerage added that finance costs are expected to decline 26.8% year-on-year, aided by a lower average discount rate of 11.5% during the quarter.