Thatta Cement Company has announced its financial results for the half year ending 31 December 2024, showcasing significant improvements in profitability and operational efficiency.
Net sales rose by 23.2 per cent to INR3.85bn (US$44.21m) from INR3.12bn in the same period last year, while gross profit more than doubled to INR1.2bn from INR661.07m, driven by a gross profit margin increase to 31.2 per cent from 21.2 per cent. Profit before tax surged to INR1.72bn, up from INR634.49m, reflecting improved market penetration and a shift to cost-effective domestic coal. As a result, the cost-to-sales ratio fell to 68.8 per cent from 78.8 per cent.
According to data from the Pakistan Stock Exchange (PSX), earnings per share (EPS) rose to INR13.31 from INR3.64, indicating strong financial performance and shareholder returns. Finance costs remained stable, demonstrating effective financial management despite ongoing economic challenges.
Thatta Cement’s local sales volumes grew by 12.3 per cent, supported by higher retention prices. The company’s renewable energy initiatives, including a 5MW solar power plant and a forthcoming 4.8MW wind project, highlight its focus on sustainable growth and efficiency.
The company remains optimistic, expecting stronger cement demand as Pakistan's macroeconomic indicators stabilise. With the IMF's approval of a US$7bn Stand-by Arrangement and reduced inflation and interest rates, further growth is anticipated. However, high electricity prices remain a concern, though government measures to reduce costs may provide future relief.
Group performance showed a rise in total equity to INR5.28bn from INR4.33bn, with net sales increasing to INR4.15bn from INR3.15bn. Gross profit rose to INR1.25bn from INR625.11m.
The Board of Directors, in a meeting held on 1 February 2025, approved an interim cash dividend of five per cent (INR0.50/share) for minority shareholders.
