Thatta Cement Co Ltd in Pakistan announced its financial results on 25 October. It reported earnings of PKR597m (US$2.15m) for the 1QFY24-25. The YoY growth of 392 per cent in earnings is attributed to higher gross margins and other income. BMA Capital Management Ltd remarked that the earnings aligned with market expectations.
The company’s topline increased by 17 per cent YoY to PKR1.7bn due to higher retention prices and growth in local cement dispatches. The company reported a distribution cost of PKR12m for 1QFY24-25, reflecting a decline of 13 per cent YoY. Other income increased to PKR358m as cash balance and short-term investments increased to PKR4.1bn as of 24 June from PKR0.9bn on 23 June.
The board of directors approved an equity investment of PKR500m in the associated company, Minsk Work Tractor & Assembling (Pvt) Ltd. Initially, this company will import completely-built units (CBUs) from Belarus and later transition to importing and assembling completely knocked-down (CKD) units.
Additionally, the board approved the acquisition of 12.5m shares of Thatta Power (Pvt) Ltd from Rotocast Engineering Company (Pvt) Ltd, which currently holds a 26.09 per cent stake in Thatta Power. Upon completing this transaction, Thatta Cement Company’s shareholding in Thatta Power will increase to 88.52 per cent.
by Abdul Rab Siddiqi, Pakistan
