Cherat’s first-half boosted by domestic deliveries

Cherat’s Cement’s domestic sales increased by 10 per cent during the first half of the current Pakistan fiscal boosted by strong construction activity. Total dispatches over the period rose by four per cent, as exports to Afghanistan declined by six per cent.

Turnover increased by four per cent. During the six months under review, production costs escalated mainly due to significant upward revision in electricity tariff, and imposition of fuel price adjustment levy. However, improved liquidity together with operational efficiencies enabled the company to contain costs. For the six months ended 31 December 2014, the company posted on after tax profit of PKR640m.

Expansion on schedule
Work on Cherat's 1.3Mta expansion project is progressing on schedule, according to the company's six-month report. A letter of credit has been established for the imported equipment, and civil works contracts awarded. On the financing front, the company has finalised the long term loan for the project with leading banks. Completion of the project is scheduled for FY17.
 
The company has an existing production capacity of 1Mt, at its plant in Village Lakrai, District Nowshera, Khyber Pakhtunkhwa province.