KARACHI: Cherat Cement Company Limited (PSX: CHCC) has reported a net profit of Rs5.52 billion for the nine months ended March 31, 2026, while unveiling a series of strategic initiatives, including a proposed share buyback, an investment in its associate company, and plans to diversify into the mining sector.
According to the company’s financial results approved by the Board of Directors, Cherat Cement recorded a net profit of Rs5.518 billion, compared with Rs6.833 billion in the corresponding period last year. Earnings per share (EPS) stood at Rs28.40, down from Rs35.17 a year earlier. Despite the decline in profitability, the company maintained a strong financial position amid a challenging business environment.
During the review period, the company generated net sales of Rs27.59 billion, while gross profit reached Rs9.60 billion. Operating profit amounted to Rs9.18 billion, reflecting resilient operational performance despite lower earnings compared to the previous year.
The Board did not recommend any cash dividend, bonus shares, or right shares for the period.
A key highlight of the board meeting was the recommendation to seek shareholder approval for the buyback of up to 4% of the company’s issued and paid-up share capital, equivalent to 7.77 million ordinary shares. The buyback will be carried out through the Pakistan Stock Exchange, subject to approval at the Extraordinary General Meeting (EOGM) scheduled for June 9, 2026. The company stated that the move is intended to improve earnings per share while also providing an exit opportunity for shareholders wishing to liquidate their investment.
In addition, the board approved an investment of up to Rs300 million in Cherat Packaging Limited, strengthening the company’s investment in its associate business.
Cherat Cement also announced plans to diversify into the mining industry through a consortium structure managed by joint venture companies. Under the proposed arrangement, each participating partner, including Cherat Cement, is expected to contribute an initial capital investment of up to Rs500 million, with all partners maintaining equal ownership. Further details regarding the consortium and joint venture framework will be shared in due course.
The company noted that notices for the Extraordinary General Meeting will be issued separately, where shareholders will vote on the proposed share buyback and other strategic resolutions.
