Karachi: Kohat Cement Company Ltd. (KOHC) has reported a significant decline in its earnings for the third quarter of the fiscal year 2026, attributing the decrease primarily to reduced offtakes. The company announced earnings of PkR1.9 billion, or PkR2.0 per share, marking a 20% drop compared to PkR2.3 billion, or PkR2.5 per share, during the same period last year. Despite the downturn, the financial results aligned with market expectations.
According to AKD Securities Limited, while revenue remained steady year-over-year at PkR8.2 billion, this stability was due to higher retention prices counterbalancing a 4% decline in offtakes. The company's gross margins experienced a contraction, falling to 34.8% from 39.5% in the same period last year. This contraction was attributed to the increased coal prices that followed the closure of the Afghan border.
Additionally, KOHC's other income saw a decrease, dropping 33% year-over-year to PkR621 million from PkR921 million. This reduction occurred despite a 12% increase in average cash and short-term investments, primarily due to lower investment yields.
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