Pakistan's cement industry's profit rose 30 per cent to PKR45.169bn (US$431.6m) in the first nine months of the current fiscal year as there was a surge in sales, supported by soft oil and 11-year low coal prices, according to the Topline Securities Ltd brokerage.
In the July-March period of the last fiscal year, the local industry earned PKR34.847bn. The profitability growth was supported by 13 per cent YoY growth in sales as a result of higher local dispatches, firm local pricing, 802 basis points increase in gross margin to 40.9 per cent and 16 per cent decrease in selling and distribution expenses, said Topline Securities analyst Nabeel Khursheed.
The brokerage assessed the financial results of 15 cement markers, out of 19 players, representing almost 100 per cent of the industry's market capitalisation. The report said the industry's profit grew 26 per cent to PKR16.303bn in the third quarter (Jan-March) of 2015-16 on the back of 20 per cent increase in local dispatches and rise in gross margins.