Pakistan-based Power Cement Ltd recently announced a profit before tax of PKR762m (US$2.7m) in the 9MFY24-25, marking its first profit in six years. According to AHL Research, this result reflects improved operational efficiency, reduced financial costs, and strategic investments in renewable energy.
With a production capacity of 3.37Mta and a 19 per cent market share in Pakistan's southern region, the company faced challenges in cement dispatches, which fell by 19 per cent YoY to 1.667Mt, driven by a 36 per cent decline in exports.
Despite initial demand struggles, a recovery in the second and third quarters limited the overall decline in dispatches to 2.3 per cent for the year. Due to weak domestic demand, capacity utilisation fell to 61 per cent from 76 per cent. However, the company achieved a five per cent rise in gross profit and a 24 per cent increase in operating profit, thanks to a 35 per cent reduction in finance costs.
Looking to the future, Power Cement aims to rely less on grid power, with a 7.5MW wind project set to begin operations by FY25-26. The company expects a 7-10 per cent annual growth in cement demand and stable export prices at US$37-38/t by FY25-26, positioning itself for sustained growth amid market challenges.
by Abdul Rab Siddiqi, Pakistan
