Lahore: The Board of Directors of Kohat Cement Company Limited has announced a significant share buy-back initiative, proposing the repurchase of up to twelve million ordinary shares, as detailed in a meeting held on September 5, 2024. This decision comes despite the Board recommending no cash dividend, bonus shares, or rights shares for the fiscal year ended June 30, 2024.

According to information available from the Pakistan Stock Exchange (PSX), the company has laid out plans to buy back shares using distributable profits or reserves, in accordance with the Companies Act, 2017 and the Listed Companies (Buy-Back of Shares) Regulations, 2019. Additionally, the Board has approved a renewal of investment up to PKR 600 million in mark-up bearing, short-term running finance for Ultra Kraft (Private) Limited, an associated company.

Kohat Cement’s financial performance for the year reflects a slight decline in net sales, reporting PKR 38.65 billion, compared to PKR 38.92 billion in the previous year. Despite this, the company has managed to increase its gross profit from PKR 10.43 billion in 2023 to PKR 11.26 billion in 2024, demonstrating effective cost management and operational efficiency.

The company’s operating profit also saw an increase, rising to approximately PKR 10 billion, up from PKR 9.12 billion in the previous year. This improvement was bolstered by significant other income, which more than doubled to PKR 4.45 billion. However, the financial statements indicate a reduction in finance costs and a notable change in tax expenses, contributing to a substantial rise in profit after taxation to PKR 8.89 billion, up from PKR 5.82 billion the previous year.

Earnings per share showed a considerable increase, climbing to PKR 45.27 from PKR 28.98, reflecting the company's robust performance and strategic financial maneuvers throughout the fiscal year.

The Annual General Meeting is scheduled for October 15, 2024, in Kohat, with the company’s share transfer books to be closed from October 9 to October 15, 2024. These decisions are set to be finalized with shareholder approval at the upcoming meeting, where further details of the company’s financial strategies and shareholder benefits will be discussed.