Flying Cement to install 21MW power plant for Line 2

Company Secretary of Flying Cement Co Ltd, Shahid Ahmad Awan has informed Pakistan Stock Exchange (PSX) that the Board of Directors of the company, in their meeting on 3 October discussed the installation of 21MW captive power plants to meet the power requirement of Line 2 at Lilla, in Punjab province of Pakistan.

The company has already obtained a no-objection certificate (NOC) for its installation from the Government of Punjab Environmental Protection Agency.

According to the company's 3Q22 report (Jan-March 2022), Flying Cement Co is fully committed to completing its Line 2 expansion project, after which a significant rise in profitability and financial ratios is expected to maximise shareholder return. It is estimated that the company shall achieve its commercial operation date (COD) later this year, after which the cement production capacity will rise from 1.197Mta to 3.51Mta.

Flying Cement's profit increased during FY21-22
Meanwhile, Flying Cement has reported that its profit after taxation for FY22 comes to PKR924m (US$4m) from a profit of PKR143.6m earned in the corresponding period last year. The major increase in yield can be attributed to higher net sales of PKR53.36bn from PKR32.05bn in the same period the previous year.  

The company incurred higher administrative expenses of PKR75.9m against PKR53.8m and higher distribution expenses of PKR14.5m as opposed to PKR10.7m in the same period last year.

The financial cost has ballooned to PKR115m from PKR71m during the comparative accounting period.