Pakistan cement sector subdued in FY18

The Pakistan cement sector collectively recorded a one per cent YoY decline in profit-after-tax during the FY18 period ended 30 June, according to a report by Spectrum Securities Ltd. Profit-before-tax registered a decline of 24 per cent.

Furthermore, the gross margin fell nine per cent in the FY18 on account of higher coal prices (37 per cent rise to US$105/t) and PKR depreciation (16 per cent on-year). To review sector performance, the report considered the financial results of eight major cement companies in the country.

A 14 per cent growth in dispatches to 45.9Mt did not help sustain profitability during the financial year.