Pioneer Cement net income rises 16%

Pioneer Cement Ltd posted a net income of PKR2.91bn (US$27.6m) in the fiscal year ended on 30 June, up 16 per cent compared with PKR2.51bn in the previous year, according to a company notice to the Pakistan Stock Exchange (PSX).

Revenues of the company surged by 13 per cent YoY mainly driven by clinker sales made to Fauji Cement during the year.

Gross margins of the company remained above industry average of 40 per cent, however, they dipped slightly by 100 basis points YoY to 42 per cent in fiscal year 2017, according to a BMA Capital report.

Pioneer Cement benefitted from its high reliance on grid for power where the tariff fell by one per cent during the year compared with YoY increase of 35 per cent in furnace oil prices and a six per cent YoY increase in gas prices.

Moreover, utilisation of its 12MW waste heat recovery system from the third quarter also played its role in offsetting negative impact of increase in coal prices during the year.