KOHC Cement Company is anticipated to report a PAT of PKR 2,756 million (Diluted EPS: PKR 3.00) for 4QFY25, reflecting an increase of 16% YoY supported by higher retention prices and improved cost efficiencies. Sales revenue for the quarter is expected to reach PKR 10,132 million, up 17% YoY, mainly due to a surge in retention prices.

Gross margins are estimated at 42.43%, an increase of 10.68 ppt YoY. This improvement is primarily driven by lower fuel and coal prices, enhanced cost efficiencies, an increase in retention pricing, and a 60.82% decrease in exports. Additionally, the company’s investment in renewable energy has further contributed to the expansion in margins.

The average price of a 50kg cement bag rose 11.62% YoY to 1,412 in June 2025, up from 1,265 in June 2024. Coal prices averaged USD 89.57/ton in 4QFY25, down 6.3% QoQ from USD 95.56/ton in 3QFY25 and 16.8% YoY from USD 107.70/ton in 4QFY24.

The average discount rate stood at 11% in 4QFY25, down from 20.5% in 4QFY24 and 12% in 3QFY25, reflecting a sharp decline of 9.5 percentage points year-on-year (YoY) and 1 percentage point quarter-on-quarter QoQ. As a result, finance costs dropped by 47% YoY in 4QFY25 and 49% YoY in FY25.
The increase in other income was primarily driven by higher expected returns from increased short-term investments, which rose from PKR 20,279 million to PKR 30,960 million. As a result, other income increased by 10% YoY in FY25.

Local dispatches reached 557,856 tons in 4QFY25, showing a slight decline of 0.71% YoY compared to 561,868 tons in 4QFY24. However, on a QoQ basis, dispatches increased by 3.77%, up from 537,581 tons in 3QFY25.

Export dispatches declined by 60.82% YoY to 2,751.00 tons in 4QFY25, compared to 7,019 tons in the same period last year. On a QoQ basis, however, export dispatches jumped by 191%, up sharply from 945 tons in 3QFY25.

Courtesy – AHCML Research