Pakistan’s Cement Sector Sees Double Digit Profit Growth
Islamabad: Pakistan’s cement sector posted a record earnings rise of PKR22.4 billion (US$58.18 million) in the second quarter of FY23-24, up 8% YoY.
This considerable increase in earnings is mostly driven by the sector’s improved gross margins and other income.
According to Topline Pakistan Research, Lucky Cement (LUCK) was the leading contributor to profitability, followed by Bestway Cement (BWCL) and Fauji Cement (FCCL).
Analysts also remarked that, despite a drop in cement deliveries, the cement industry achieved substantial success.
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The cement sector’s sales climbed by 9% year on year to PKR 179 billion in the second quarter of FY 23-24.
This growth was fueled by a 16% YoY increase in average cement prices.
Despite a 12% year-on-year fall in local dispatches to 10.1 million tonnes during the same time, the overall decline in cement dispatches was limited to 1% due to a 166% increase in cement exports.
In the second quarter of the current fiscal year, the sector’s effective tax rate was 32%; this is less than the 35% rate in the first quarter of the previous fiscal year, but it is still higher than the 27% rate in the same period last year.
