During the period of July to December in FY22-23 (1HFY22-23), three cement factories in Pakistan recorded a profit in their operations. However, the demand for cement was impacted negatively by double-digit inflation, increased interest rates, a sharp decline in the value of the Pakistani rupee, low GDP growth, high costs of construction materials, and a reduction in Public Sector Development Programmes (PSDP), resulting in a YoY decline of 21 per cent in cement dispatches in 1HFY22-23.
Fauji Cement Co Ltd (FCCL) achieved a profit of PKR5.079bn (US$19.54m) during 1HFY22-23, which represents a 34.1 per cent YoY growth compared to the same period in the previous year. Its sales rose by 32.9 per cent to PKR33.673bn from PKR25.346bn in the same period last year. The company incurred distribution expenses of PKR266m, with administrative expenses rising to PKR751m.
The company’s brownfield cement expansion of 1.95Mta at Nizampur started commercial operation in October 2022, expanding the company’s total capacity (Fauji + Askari) to over 8Mta, making it the third-largest player in the country. Meanwhile, the greenfield expansion at DG Khan Cement (2.05 Mta) is expected to start operating by the end of this year. The company’s solar power capacity now stands at 29MW, with another 11MW expected to come online at the Nizampur site.
Cherat Cement Co Ltd (CHCC) reported a profit of PKR3.038bn during 1HFY22-23, which represents a YoY growth of 28.2 per cent compared to the corresponding period in the previous year. Its sales increased by 31.7 per cent to PKR19.457bn in 1HFY22-23 from PKR14.778bn in the same period last year. The company incurred higher distribution expenses of PKR274m and administrative expenses of PKR208m in 1HFY22-23.
Kohat Cement Co Ltd (KOHC) achieved a profit after tax of PKR3.739bn in 1HFY22-23, which represents a YoY growth of 25.3 per cent compared to the corresponding period in the previous year. Its sales increased by 32 per cent to PKR19.814bn from PKR15.014bn in the same period last year. The company incurred a distribution cost of PKR74m and administrative expenses of PKR195m in 1HFY22-23.