KARACHI: Kohat Cem­ent Company Ltd on Thursday announced a profit-after-tax of Rs1.16 billion (earnings per share Rs7.48) during 2QFY16 as compared to Rs946 million (eps Rs6.12) earned in the preceding quarter, an increase of 22.62 per cent.

During the first half FY16, PAT rose by 53.28pc to Rs2.10bn (eps at Rs13.60) from Rs1.37bn (eps at Rs8.84) in the same period last year.

The company also announced an interim dividend at Rs5 per share. KOHC’s stock price jumped ‘limit up’ in intra-day trading and closed at Rs260.25.

Analysts at KASB Securities attributed the growth in bottom-line mainly to 20pc quarter-on-quarter increase in sales volume as local demand offsets the decline in exports volume.

However, gross margins reduced by 200 basis points to 43pc quarter-on-quarter, due to the increase in cost of goods sold by 21pc despite the decline in coal and furnace oil prices.

Moreover, other income jumped by 49pc to Rs158m while finance cost remains unchanged at Rs9m.

Published in Dawn, January 29th, 2016