Attock Cement year-end results, Pakistan

During the year under review Pakistan’s Attock Cement’s sales in term of value increased to Rs 1.882bn as against Rs 1.143bn registering 30.4% increase YoY. Its Falcon brand cement further entrenched in the core domestic market in and around Karach. It also received queries from the regional markets of UAE, Qatar, Saudi Arabia, Iran and Kenya. Attock Cement became the first Pakistani Company which exported 41,500t clinker to Qatar in the month of April 2004. 

Due to higher sales, better retention and increase in capacity utilisation the overall gross margin improved. The overall profit before tax improved by Rs 260.8 million (133.1%) and profit after tax improved by Rs 148.1m (112.1%) over the previous year.

The cement manufacturing plant of the company is located in the province of Balochistan at Tehsil Hub, District Lasbella which is adjoining district of City of Karachi which is the core market of its product - Falcon brand cement. It is also one of the preferred brands for the institutional customers associated with large projects in and around Karachi. 

During the year, its positioning in this market further entrenched as evidenced from the growth of its sales by 16.5% over previous year in the Karachi market. 

During the FY July-June 2003-04, the cement industry in Pakistan showed great resilience as its production picked up sharply and registered 14% growth over the preceding year’s. Housing and construction sector being identified as one of the major drivers of growth, responded positively to the incentives given by the government to this sector. 

During the year 2003-04, the average capacity utilisation of the cement industry was recorded at 81%. It is reported that at one time of the year utilisation touched 100% mark. 

Attock Cement’s utilised production capacity increased to 80.31% from 71.31% in the preceding year. The company’s cement output increased to 607 thousand metric tonnes from 539 thousand metric tonnes in the previous year. The company also received enquiries from the regional markets of UAE, Qatar, Saudi Arabia, Iran and Kenya. Due to increase in demand the overall prices remained favourably stable during the year. 

In order to meet rising regional demands, the company decided to enhance its capacities from 2400tpd to 5400tpd.