Attock Cement continues to dominate Karachi market in 9MFY19

Attock Cement continues to dominate Karachi market in 9MFY19
11 June 2019

Attock Cement Pakistan Ltd (ACPL) maintained its dominant position during 9MFY19 in the core market of Karachi, leading in volumes and cement price. As part of the company's strategy, it also maintained a presence in the entire southern zone and in the lower Punjab market. As a result, the company's local  dispatches increased by 117.861t, or nine per cent, over the 9MFY19 period.
On the back of higher production following the start of its Kiln No 3 operations, the company aggressively explored regional markets and was able to sell 616,309t of clinker in Bangladesh, Sri Lanka and east Africa. 

Due to additional sales of both cement and clinker, the net sales revenue reached at record level of PKR16.15bn (US$107.3m), representing an increase of PKR4.29bn (36 per cent) when compared with the corresponding period of the previous year. Though the overall net retention from cement sales only increased by PKR124t (two per cent), the massive growth in sales was primarily achieved due to higher clinker volumes being sold.

The continuous devaluation of PKR against US dollar, the increase in coal prices in international markets and higher diesel prices kept production costs elevated, and on a comparable period production costs showed an increase of PKR288t (six per cent). Accordingly, the company recorded net profit after tax of PKR1.37bn, down 25 per cent when compared to same period last year.

Meanwhile, ACPL has invited tenders for the bulk supply of gypsum and laterite in FY19-20. According to the company announcement, offers are invited for the supply of approximately 100,000t of gypsum and 150,000t of laterite between July 2019-June 2020 at its cement plant located at Hub Chowki, Lasbela, Balochistan. Bids are due on 20 June 2019.

Published under Cement News