Kohat Cement Company likely depicts a 54% YoY, during 2QFY21

KOHC is scheduled to announce its 2QFY22 financial result on 17th Feb’22 whereby we forecast the company to post a profit after tax of PKR 1,466mn (EPS: PKR 7.30) compared to profit after tax of PKR 965mn (EPS: PKR 4.81) during 2QFY21, depicting a 54% YoY growth.

This was primarily owed to a 37% upturn in revenue led by a noteworthy 40% surge in retention prices which offset the impact of a minor 3% decline in total offtake to 934k tons.

We expect this to help keep margins upbeat during the quarter at 28.5% against 27.6% last year despite higher coal prices, augmented electricity tariff and PKR depreciation.

Meanwhile margins should witness a contraction on a QoQ basis (1QFY22: 33.2%) amid higher coal prices and PKR depreciation which may counter the impact of higher retention prices. This will take the 1HFY22 bottom-line to PKR 2,864mn (EPS: PKR 14.26) vis-à-vis PKR 1,472mn (EPS: PKR 7.33) in SPLY. Higher margins this year (30.7% vs. 23.4%) as a result of robust retention prices are projected to translate to an earnings growth of 94% in 1HFY22.

Courtesy – AHL Research

Sharing is caring

Leave a Reply