Five pakistan producers report losses

Five pakistan producers report losses
Published: 11 March 2011

Five leading Pakistan producers have announced their financial results for the six months period ending 31 December 2010. Each incurred losses due to a fall in sales plus increases in administrative, financials and coal costs. In addition, capacity utilisation was reduced.

Local players said they had to contend with high interest rates, increasing fuel and power costs and a rise in duties, taxes and royalty on raw materials. However, selling prices during the period have shown signs of improvement and are likely to rise further in the coming months.

On the export front, regional markets like the UAE are likely to remain depressed in the foreseeable future, while other markets such as Afghanistan continue to generate good demand for Pakistani cement. Other markets like Africa and India are also likely to continue to generate some demand for Pakistan exports for some time.

Bestway Cement Ltd reported that its losses after tax increased to 
PKR477.050m (US$5.61m) in FY10-11 (July- Dec) from PKR383.237m in the corresponding period last year – showing an increase in loss of 24.48 per cent.  Net sales dropped to PKR 5.681bn in FY10-11 (July-Dec) from PKR7.087bn in the corresponding period last year.  Administrative expense increased to PKR 69.953m from PKR 64.084m in same period last year.
 


Flying Cement Company posted a loss after tax of PKR65.119m (US$0.77m) in FY10-11 (July-Dec) compared to PKR74.657 m in corresponding period last year.  Net sales were PKR 203.307m during the period compared to PKR81.609m in corresponding period last year –a growth of 149.123 per cent. But the company’s cost of sales increased to PKR 274.23m from PKR 166.887m in same period last year.
 


Mustehkam Cement posted a loss after tax of PKR 171.499m (US$2.02m) in FY 2010-11 (July- Dec) compared to PKR 107.587m in corresponding period last year – showing an increase in loss by 59.40 per cent.  Net sales were up to PKR1.783bn compared with  PKR169.654m in corresponding period last year – a growth of 955 per cent. Finance costs surged to PKR 386.560m from PKR 40.360m in same period last year.



Al-Abbas Cement Industries posted a loss after tax of PKR477.881m in FY 2010-11 (July- Dec) compared to PKR247.073m in the corresponding period last year – showing losses surged 93.42 per cent. Its net sales stood at PKR 777.662m from PKR1.025bn in the corresponding period last year. Similarly, the company’s selling and distribution expenses were PKR223.633m in July-Dec 2010 from PKR65.992m in same period last year.


Dandot Cement Company posted a loss after tax of PKR90.922m (US$1.10m) in FY 2010-11 (July- Dec) compared to PKR76.114m in the corresponding period last year. The company’s net sales were up to PKR189.302m to PKR44.674m in corresponding period last year – a rise of 323.74 per cent. The company’s selling expenses were PKR 263.75m from PKR 119.65m in same period last year.