Thatta Cement's profit falls to PKR183.9m in 6MFY17-18

Thatta Cement Co Ltd's profit after tax fell from PKR389.8m (US$3.5m) to PKR183.9m (US$1.6m) during 6MFY17-18. Clinker production stood at 194,825t with a capacity utilisation of 76.4 per cent in comparison to clinker manufacture of 236,135t and capacity utilisation of 92.6 per cent during the corresponding period of last year. Lower off take of cement and accumulation of huge clinker stocks were cited as reasons for the decline in clinker production.

Overall sales of the company during the half year ended 31 December 2017 fell by 24.28 per cent in value terms, whereas it dropped by 32.72 per cent in terms of volume. The decrease in sales revenue and volume was mainly due to decline in the sales of clinker during the period as compared with the same period of last year.

Thatta Cement Co Ltd also announced In a bourse filing, on 16 March, that management has appointed Muhammad Taha Hamdani as the new CEO of the company in place of Muhammad Fazlullah Sharif.

Meanwhile, the arrangement of financing for the 5MW waste heat recovery (WHR) project has been finalised with the syndicate of banks and letter of credit has been established in favour of the supplier for the supply of plant and machinery for the project. The project has started and its completion is expected in 18 months.

Thatta Cement was founded in 1982 with a manufacturing facility located in the Makli district, Thatta in Sindh. The plant has a capacity of 488,250t of cement.