Dewan Cement Ltd (DCL) has reported a year of steady recovery and operational focus in its Annual Report for the financial year ended 30 June 2025 (FY24-25), despite facing persistent headwinds from high energy costs, inflation and uneven demand in Pakistan’s construction sector.
The company recorded net sales of PKR31.4bn (US$113m), a modest increase from the previous year, reflecting stronger volumes in the south region and selective price stability in key markets. Profit before tax stood at PKR1.6bn, with profit after tax at PKR1.1bn, compared with PKR980m in FY23-24. Earnings per share rose to PKR2.09, supported by improved clinker output and operational efficiencies achieved through plant maintenance and process optimisation.
Management noted that domestic demand remained subdued due to tight monetary policy and reduced private construction, though public-sector projects helped offset some of the weakness. Export activity also provided limited relief, constrained by logistics costs and regional competition. However, DCL maintained stable production across both its Karachi and Hattar plants, running close to 75 percent capacity utilisation.
During the year, Dewan Cement continued efforts to strengthen operational resilience and cost control. The company advanced its energy efficiency programme, targeting reduced dependence on imported coal through greater use of alternative fuels, such as refuse-derived fuel (RDF) and locally sourced biomass. It also began feasibility studies for solar power installations at both plants to mitigate rising electricity costs.
Chairman Mohammad Yousuf Dewan described FY24-25 as “a year of consolidation and strategic preparation,” noting that operational stability and prudent financial management were central to the company’s results. “Despite macroeconomic pressures, we have continued to improve process efficiency and safeguard profitability. Our focus on modernisation and alternative energy will help secure long-term sustainability,” he said.
The report highlighted DCL’s ongoing sustainability and social initiatives, including community health drives, educational support for local schools, and enhanced workplace safety standards. The company reiterated its commitment to reducing emissions intensity and aligning operations with Pakistan’s national decarbonisation targets.
Looking ahead, management expects modest improvement in cement demand in FY25-26, supported by infrastructure spending and a gradual recovery in the housing sector. The company plans further investments in waste-heat recovery and alternative energy projects, alongside continuous optimisation of its grinding operations.
The directors emphasised that Dewan Cement’s financial position remains stable, with manageable leverage and adequate liquidity to pursue selective growth opportunities. While external challenges persist—particularly fuel price volatility and currency depreciation—the company believes its renewed operational focus, cost discipline and energy diversification will underpin future performance.
“Dewan Cement’s strategy is centred on resilience, innovation and sustainability,” the Chairman concluded. “We remain committed to delivering long-term value to our shareholders while supporting Pakistan’s broader industrial and economic growth.”
