Cherat Cement to post PKR3.3 billion profit for 1HFY23

Company Limited (CHCC) is expected to announce 2QFY23 result. Analysts expect the unconsolidated EPS for the quarter to clock in at PKR9.3. On the topline front, sales are expected to clock in at PKR10.85 billion, mainly on the back of increased offtakes as demand recovered from low-base of 1QFY23, with offtakes expected to settle at 850,000 tons for the quarter. However, analysts expect gross margins to clock in at 31% for 2QFY23, majorly due to unavailability of captive gas generator in winters alongside depleting low-cost coal inventories, keeping margins in check. Overall, finance costs are expected to hurt in the near term, where-in the company is expected to borrow significantly high due to PKR36 billion expansions, expected to come online in FY25, although delays in the capital project may be expected due to the likely delay in L/C opening and supply chain issues. Overall, company is expected to post profit after tax of PKR3.3 billion (EPS: PKR17.0) for 1HFY23, up 33%YoY.

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