KARACHI: Thatta Cement Company Limited has reported a strong improvement in profitability for the nine-month period ended March 31, 2026, driven by higher operating income despite a decline in net sales and increased finance costs. The company announced its financial results following a meeting of its Board of Directors held on April 27, 2026. No cash dividend, bonus shares, right shares, or any other corporate action were declared.

According to the company’s unconsolidated financial statements, profit after tax increased to Rs1.898 billion during the first nine months of FY2026, compared with Rs1.688 billion recorded in the corresponding period last year. This represents a year-on-year increase of approximately 12.5%.

Earnings per share (EPS) also improved to Rs4.48, up from Rs3.98 in the same period of the previous year, reflecting stronger returns for shareholders.

During the review period, net sales declined to Rs5.152 billion from Rs5.621 billion a year earlier. Gross profit also fell to Rs1.292 billion from Rs1.626 billion, indicating pressure on margins amid lower sales volumes.

Despite this, the company significantly strengthened its operating performance through a substantial rise in other income, which surged to Rs1.799 billion compared with Rs1.151 billion in the corresponding period last year. As a result, operating profit increased to Rs2.793 billion, up from Rs2.451 billion.

Finance costs, however, rose sharply to Rs393.6 million, compared with Rs34.6 million in the same period last year, reflecting higher borrowing costs. Even so, profit before taxation remained robust at Rs2.399 billion, only marginally lower than Rs2.416 billion recorded a year earlier. Lower tax expenses supported the improvement in net earnings.

On the balance sheet, the company’s financial position strengthened considerably. Total assets increased to Rs16.40 billion as of March 31, 2026, from Rs9.52 billion at the end of June 2025, primarily due to higher long-term investments and expanded cash resources. Shareholders’ equity also rose to Rs8.60 billion, compared with Rs6.70 billion at the start of the financial year.

The Board of Directors decided not to recommend any cash dividend, bonus shares, right shares, or other corporate action for the nine-month period ended March 31, 2026.