Power Cement Ltd (PCL) has informed Pakistan Stock Exchange (PSX) that its new 7700tpd clinker production plant has started producing clinker from 10 December, says a notification sent by Company Secretary, Tahir Iqbal.
PCL has been in process of installation of its two plants, namely a 7700tpd ‘clinker production plant’ and an 8800tpd ‘cement production and dispatch plant’ – increasing its capacities to 10,700tpd of clinker and 12,100tpd of cement, respectively. With this installation, PCL becomes the second-largest cement producer in south Pakistan.
Financial result ending 30 September 2019
PCL earned a net profit of PKR7.9m (US$50,976) during the 1Q19-20 as compared to PKR10.9m in same period last year. According to a company report, its sales volumes remained significantly low during the period, primarily due to fall in market demand. Electricity costs saw a jump of over 30 per cent while packing material costs also increased by around 15 per cent. These factors, coupled with lower capacity utilisation, lead to gross losses for the period.
The company is optimistic in terms of the growth of domestic demand. In addition, it said that the simplified fixed taxation scheme for the builders and developers is expected to provide the required boost to the construction industry, hence improving domestic cement demand. The increase in the pace of CPEC projects, the government’s housing project of providing 5m homes, will further improve the demand side of cement. The management is fully aligned with the rapid changes in regulatory regime and market dynamics. Efforts are being made to curtail the costs wherever possible and create a price-efficient sales mix to maximise profitability, mitigate market risks, meet future challenges and maintain business growth