Gharibwal Cement achieved significant financial milestones in FY24

Gharibwal Cement Ltd has issued a notice to call the 64th Annual General Meeting, which will be held on 24 October 2024, to approve the account for FY24. 

The company achieved significant financial milestones in FY24, with a net profit surge of 41.4 per cent YoY, reaching PKR1.743bn (US$626.1m). This strong performance, a testament to the company’s collective efforts, contributed to an impressive Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) growth of nine per cent, totalling PKR4.092bn. Additionally, despite a decline in cement dispatches by 11.6 per cent YoY, the company generated net sales revenue of PKR18.165bn, reflecting only a marginal decline of 0.8 per cent YoY.

However, the company faced challenges as the average cost of sales per tonne increased by 12.1 per cent YoY, influenced by factors such as the devaluation of the Pakistani Rupee, rising power and fuel prices, a higher royalty rate on raw materials, and overall inflationary pressures. These factors contributed to a slight decrease in gross profit, which stood at PKR3.775bn, down 0.5 per cent YoY.

The annual report adds that new long-term financing of PKR1.1bn was secured, primarily invested in solar and cooler retrofit projects.

Capacity expansion and balancing, modernisation, and rehabilitation (BMR)
The newly installed 12MW solar system commenced production in June 2024, significantly reducing the company's power costs. The Board has also approved an additional 8MW solar expansion, slated for completion in FY25. Meanwhile, civil work on Production Line II is progressing steadily.

The cooler replacement project is scheduled to begin in September 2024, with completion expected by December 2024. By adopting cutting-edge technology, this BMR investment will enhance the company's production capacity and drive down fuel costs.