According to a report of AHL Research, the management of Thatta Cement Co Ltd (THCCL) held a corporate briefing session on 24 November to discuss the FY22-23 financial result and future outlook. Recalled here that the company posted consolidated earnings of PKR310m (US$1.099m) in FY22-23 versus PKR86m in the same period last year, a YoY increase of 258 per cent. The company also announced shares buyback of up to PKR15m, about ~15 per cent of the paid-up capital.
Thatta Power (Pvt) Ltd (TPPL), a subsidiary of THCCL, has a gross generation capacity of 27.1MW, consisting of 23.1MW of gas and 4MW of waste heat recovery plants (WHRP). TPPL supplies electricity to the holding company. Ity currently fulfills 30 per cent of its energy needs through WHRP and solar power. By December 2023, the company will install another 2.2MW of solar power, taking full solar capacity to 3.5MW. This will save 20-25 per cent of its energy cost.
The management is considering expansion in the future, although a timeline has yet to be provided. The company utilises 100 per cent of local coal in its fuel mix. In FY22-23, the weighted average cost of coal was PKR19,000t, which came down to PKR15,000t in 1QFY23-24.
