Kohat Cement Company Limited (KOHC) is scheduled to announce its 1QFY22 financial result tomorrow whereby the company is set to post a bottom-line of PKR 810mn (EPS: PKR 4.03) during the quarter against PKR 507mn (EPS: PKR 2.52) last year and PKR 966mn (EPS: PKR 4.81) in 4QFY21. The 60% YoY jump in profitability is expected on the back of a 31% YoY surge in topline; sales growth was aided by higher retention prices as offtake remained below last year’s levels (pent up demand same period last year as the COVID lockdown was lifted after a quarter).

Albeit, margins would remain under pressure (forecast at 21% vs. 19% in 1QFY21 and 26% in 4QFY21) led by higher coal prices and PKR depreciation, which will offset the impact of augmented cement prices.

Courtesy – AHL Research