The cement sector in Pakistan continues to suffer on the back of decline in cement prices and high cost of production in country. Out of 20 listed companies in Karachi Stock Exchange (KSE), some more cement manufacturers reported losses in financial year 2009-10 (July-June), last week.
Dewan Cement reports loss of PKR 622.764 m
Pakistan’s private sector cement manufacturer – Dewan Cement Ltd. (DCL) has posted a loss of PKR622.764 m (US$7.33m) for the financial year 2009-10 (July-June) compared to a loss of PKR163.208m in corresponding period last year. The Board of Directors of Company has decided not to give any cash dividend, bonus shares or right share to the share holders. Its net turnover dropped to PKR3.494bn from PKR5.682bn but administrative expenses were increased to PKR180m from PKR157m of last year. Its loss before taxation stood at PKR619m.
Flying Cement said a loss of PKR172 m
Flying Cement Company Ltd. (FCCL) has incurred a loss after taxation PKR172m in FY09-10 compared to PKR161m losses in last financial year. It incurred administrative expenses of PKR11m compared to PKR17m of last year. Its profit before taxation stood at PKR201m (PKR239m in 2009).
Javedan Cement suffered loss of PKR128.916m
Javedan Cement Ltd. (JCL) has suffered a loss after taxation PKR128.916m in FY 2009-10 compared to PKR.022m loss in last financial year. Its net turnover dropped to PKR610.134m from PKR1.622bn and administrative expenses were slightly increased to PKR23.358m from PKR23.161m of last year. It received a loss before taxation of PKR124m (PKR370m: 2009).
Thatta Cement, however, declared profits
On positive note, Thatta Cement Company Ltd (TCCL) has announced profit after taxation PKR0.972m in FY09-10 compared to PKR23.872m profit in last financial year - recording a fall in profit of 95.93 per cent. The Board of Directors has recommended to issue 25 per cent right shares at a premium of PKR 5/- per share in proportion of 25 shares for every 100 shares, to their share holders. Its turnover – net – fell to PKR1.5bn from PKR1.7bn of last year. The cost of sales stood at PKR1.26bn and gross profit PKR277m from PKR1.29bn and PKR496m respectively of last year.