Power Cement Ltd made worthy exports in FY22-23

In the financial year ended 30 June 2023, Power Cement Ltd (PCL), witnessed a remarkable surge in net sales revenue, registering an increase of 65 per cent compared to FY21-22, according to the annual report . The local sales revenue appreciated by PKR5.65bn (US$20.53m) (39 per cent), coupled with an increase in exports by PKR5.79bn (185 per cent) compared to the corresponding period.

PCL witnessed a 177 per cent growth in gross profit in FY22-23 compared to the previous year. The gross profit margin improved notably, reaching 24 per cent from the prior year's 14 per cent. This substantial enhancement is mainly attributable to the company's success in securing improved retention prices and effective cost management, particularly in reducing fuel and electricity costs.

During the year under review, the finance costs witnessed a huge increase amounting to PKR3.81bn, marking a 45 per cent increase compared to the previous year's figure of PKR2.64bn. This massive increase is mainly attributable to an unprecedented rise in interest rates, primarily contributing to the loss before tax suffered by the company, which resulted in a Loss Per Share (LPS) of PKR0.19 for the fiscal year.

The clinker production of the company during the year under review was 2,297,890t, resulting in capacity utilisation of 72 per cent compared with the clinker production of 1.863Mt, implying capacity utilisation of 58 per cent during the corresponding year.