Cherat Cement Co Ltd has released a detailed report for FY24. The 43rd Annual General Meeting will be held on 16 October 2024, to approve the account for the same financial year. The company will consider and approve the payment of the final cash dividend at 40 per cent (PKR4 per share). This is in addition to an interim cash dividend at 15 per cent (PKR50 per share) already paid to the shareholders for the financial year ending 30 June 2024, as the Board of Directors recommended.
According to the chairman review highlighted in the annual report, the financial year 2023-24 was marked by numerous economic challenges. High inflation, increased taxation, political instability and geopolitical tensions in the Middle East, all of which hurt the economy. The cement industry in Pakistan faces many headwinds. The rising cost of inputs, economic and political instability, high inflation, fiscal limitations, and restricted foreign aid have led to a general slowdown in the construction sector. However, exports have risen substantially, alleviating the problem to some extent.
On an aggregate basis, the company’s overall sales volume decreased by eight per cent, local sales declined by 13 per cent, and exports increased by 22 per cent compared with last year. Despite lower volumes, the company managed a profit after tax of PKR5500m (US$19.8m) for the year ended 30 June 2024, compared to PKR4404m for the same period last year.
The company has successfully increased its solar power generation capacity and is planning further expansion, demonstrating its growing focus on renewable energy. This shift underscores efforts to reduce reliance on traditional power sources and align with sustainability goals. Additionally, the company continues to explore strategies to decrease dependence on imported fuel, positioning itself as a leader in energy efficiency and self-sufficiency.
