Attock Cement Pakistan Ltd (ACPL) held its corporate briefing on 20 November to discuss its FY23-24 and 1QFY24-25 financial results and outlook. During the last fiscal year, the company commissioned its Line IV plant in Hub, Balochistan, adding 1.275Mta of capacity and increasing total capacity to 4.302Mta. The capital expenditure for Line IV amounted to approximately PKR20bn (US$70m).
ACPL clinker production increased by 20 per cent YoY in the FY23-24, according to AHL Research. Cement production declined by nine per cent YoY in the same period. In the 1QFY24-25 clinker and cement production decreased by seven per cent and 11 per cent YoY, respectively.
A review of dispatches indicates that sales volumes increased by 14 per cent YoY in the FY23-24, primarily driven by a 57 per cent YoY increase in total exports, most of which are made to Bangladesh and Sri Lanka. Local cement dispatches declined by nine per cent YoY due to weak domestic demand. In the 1QFY24-25 sales increased marginally by one per cent YoY, supported by a 42 per cent YoY export surge, while local cement sales dropped by 21 per cent YoY. Local sales declined amid higher monsoon rains tagged with the imposition of new taxes on the construction sector.
Meanwhile, work on the 4.8MW wind power project is ongoing, with completion expected in the 3QFY24-25. The management expressed that the induction of this windmill will significantly reduce energy costs. The management estimates the windmill to have 38 per cent efficiency.
by Abdul Rab Siddiqi, Pakistan
