Power Cement Ltd held its analyst briefing on 26 June, during which management reviewed past performance and looked ahead. The company posted a loss of PKR1.2bn (US$4.32m) in 9MFY23-24 compared to a profit of PKR0.6bn in the previous period. Top company officials primarily attributed the loss to higher financial charges (up 39 per cent YoY) during the period amidst elevated interest rates.
The company’s total sales of 9MFY23-24 increased by 13 per cent YoY to 2.1Mt, driven by 72 per cent YoY export growth. Consequently, utilisation rose to 76 pr cent compared to 68 per cent in the same period last year.
As per the presentation, the company tapped new export markets, including the US and UK. Furthermore, margins are better in the Western markets compared to traditional export destinations (Africa and Asia). Additionally, the current export price for cement is ~US$42-44/t, and clinker is US$31-32/t.
On the fuel front, the company currently relies mostly on imported fuel (a mix of petcoke and Richards Bay coal).
Furthermore, the company has signed an agreement for a 9.6MW wind power plant, which would result in estimated savings of PKR685m per annum. Management stated that the power cost from wind and solar is substantially lower than the tariff charged on the grid rate.
