Karachi: The Cherat Cement Company Limited has announced a notable decline in its annual net profit for the fiscal year ending June 30, 2026. The company's Board of Directors disclosed the financial results during a meeting held on August 21, 2026. The board recommended a final cash dividend of Rs. 4.00 per share, amounting to 40%, in addition to an interim cash dividend previously disbursed at Rs. 1.50 per share or 15%.
The Annual General Meeting is scheduled for October 13, 2026, at the company's registered office in Nowshera, Khyber Pakhtunkhwa. The share transfer books will be closed from October 6 to October 13, 2026, as indicated in the report.
The financial results reveal a decrease in net turnover to Rs. 36.48 billion from Rs. 37.81 billion the previous year, classifying this as a minor move of 3.51% in revenue. Consequently, the gross profit fell to Rs. 12.04 billion, down from Rs. 13.97 billion, driven primarily by rising distribution and administrative expenses, which increased to Rs. 911.05 million and Rs. 689.01 million, respectively.
According to information available from the Pakistan Stock Exchange (PSX), the company's operating profit experienced a decline, reaching Rs. 11.64 billion in contrast to Rs. 13.48 billion in the prior year. This reduction is attributed to increased costs and reduced other income, which amounted to Rs. 1.77 billion compared to Rs. 1.59 billion last year.
The company's profit before income tax stood at Rs. 11.30 billion, a decrease from Rs. 12.88 billion in the previous year. The net profit for the year was reported at Rs. 7.25 billion, a decrease from Rs. 8.68 billion, marking a significant move of 16.43% in profitability.
Cherat Cement's financial position revealed total assets of Rs. 52.29 billion at the end of the fiscal year, with non-current assets slightly increasing to Rs. 29.21 billion. Current liabilities fell sharply to Rs. 4.71 billion from Rs. 8.77 billion, primarily due to a significant reduction in short-term borrowings.
The company has refrained from issuing any bonus or right shares and has not reported any other price-sensitive information beyond the financial results. The Annual Report is set to be transmitted through PUCARS at least 21 days before the Annual General Meeting.