Pakistan cement sector shows mixed nine-month results
Pakistan cement producers’ revenues during first nine months of FY10-11 (July-March) were up by nine per cent YoY thanks to an improved pricing environment (which saw an increase of 16 per cent YoY). However, this rise was not reflected in gross margins as they remained stagnant on YoY basis owing to an eight per cent increase in the cost of sales backed by a 34 per cent YoY increase in coal prices during the period, says InvestCap Research.
CemNet studied financial results of number of companies listed on the bourse and noted that their total sales increased but only few of them saw profits and major firms suffered losses with no bonus to shareholders.
Mian Raza Mansha, CEO of DG Khan Cement observed that the meager operational performance across the whole sector, along with high input costs, are expected to translate into operational losses during the period. However, recent price increases and a pick up in sales would offset those losses to some extent.
For its part, DG Khan Cement reported a profit after tax (PAT) of PKR204.788m (US$2.41m) for the nine months ended July-March, 2011 compared to PKR 467.549m profit in the nine months of the previous financial year. Sales stood at PKR13.678bn against PKR12.328b (July-March 2010). Selling and distribution expenses rose to PKR1.531bn from PKR697.688m the same nine months of last year.
Fecto Cement Ltd (FECTO) reported a profit after tax of PKR43.457m in 9MFY 2010-11 as opposed to loss of PKR160.451m in same period last year. Sales were PKR2.301bn against PKR2.128bn in 9MFY 2009-10. It incurred a financial cost of PKR92.08m from PKR65.636m last year.
Cherat Cement earned a profit after taxation of PKR14.822m during the period compared to loss of PKR149.124m in same period last year. It achieved sales of PKR2.866bn against PKR2.505bn YoY. The company’s financial costs increased to PKR213.09m from PKR96.46m last year.
Flying Cement registered a loss after tax of PKR 99.232m in 9MFY 2010-11 compared to loss of PKR79.303m in the corresponding period last year. Sales stood at PKR286.809m against PKR81.609m YoY. Financial expenses increased to PKR45.303m from PKR22.466m in 9MFY 2009-10.
Gharibwal Cement narrowed its loss after tax of PKR699.304m compared to a loss of PKR1.209bn in same period last year. Sales stood at PKR2.152bn against PKR1.779bn YoY. It incurred a financial cost of PKR584.17m from PKR818.566m last year.
Dewan Cement, also marginally narrowed losses to PKR418.975m compared to PKR447.192m in same period last year. Sales were PKR 3.518bn against PKR2.792bn YoY.
Thatta Cement reported a loss after tax of PKR61.814m in 9MFY 2010-11 against a profit of PKR1.787m in same period last year. Sales were PKR 1.280bn against PKR 1.203bn YoY. Financial costs rose to PKR 56.02m from PKR33.748m last year.
Pioneer Cement recorded a loss after tax of PKR196.945m against a loss of PKR410.489m in same period last year. Its sales were PKR 4.987bn against PKR3.934bn. Financial expenses, on the other hand, fell to PKR275.948m from PKR 304.258m last year.
Al-Abbas Cement reported a loss after tax of PKR 628.357m during the nine month period compared to a loss of PKR 387.725m YoY. Sales were PKR 1.506bn against PKR1.540bn in the corresponding period of the previous year. Financial costs increased to PKR310.78m from PKR302.238m last year.
Kohat Cement reported a loss after tax of PKR61.118m in 9MFY 2010-11 as opposed to a loss of PKR 242.127m in same period last year. Its sales stood at PKR4.137bn against PKR2.444bn and financial costs increased to PKR521.249m from PKR501.432m last year.
Bestway Cement posted a loss after tax of PKR173.523m against a loss of PKR617.801m YoY. Sales were PKR 9.270bn against PKR 10.006bn and financial costs increased to PKR1.891bn from PKR1.603bn last year.
Mustehkam Cement reported a loss after tax of PKR 312.790m against losses of PKR162.416m in same period last year. Sales were PKR2.68bn against PKR637.931m. Financial expenses increased to PKR595.682m from PKR168.531m last year.
Dandot Cement saw an increased loss after tax of PKR345.418m compared to PKR327.902m in same period last year. Its sales stood at PKR 485.599m against PKR233.269m YoY. It incurred a financial cost of PKR173.238m against PKR182.189m last year.
Published under Cement News
