Pakistan cement sector profitability improves in FY12

Pakistan’s cement sector closed FY12 with profitability growing eight per cent with improvements being seen for both larger and smaller producers.

Total industry sales were 32.5Mt, up three per cent YoY. Capacity utilisation, however, dipped to 74 per cent compared to 76 per cent in the previous year due an additional 3Mta of new capacity coming on-stream during the year in the form of Fauji Cement Company's 7560tpd line. Total industry capacity now stands at 44Mta.

On a per tonne basis, the sector’s net revenue increased 28 per cent YoY in FY12 due to a 30 per cent hike in domestic net retention prices. (Source: Pakistan Daily Times).