Islamabad: In the latest corporate briefing session, Gharibwal Cement Limited, a major player in Pakistan's cement industry, revealed its financial outcomes for the fiscal year 2023 and the first quarter of September 2023. According to information available from the Pakistan Stock Exchange (PSX), the company faced a downturn in production but increased net sales during these periods.

The company, established in December 1960 and strategically located with access to major transport routes like the GT Road and the Motorway, disclosed a significant shift in its financial performance compared to the previous year. For the fiscal year 2023, Gharibwal Cement saw its cement dispatches decrease by 19.8%, totaling 1,349,789 tons, while capacity utilization dropped from 76% to 61%.

Despite these challenges, net sales rose by 13.1% to Rs. 18,316 million, compared to Rs. 16,194 million in FY2022. The net profit, however, declined by 9.0%, with earnings per share (EPS) falling from 3.38 to 3.08. Notably, the average net selling price per ton saw a considerable increase of 41.0%, indicating a shift in market dynamics or pricing strategies.

The company's fuel and power mix for the fiscal year showed adaptations to local energy resources, with a significant increase in the use of Afghan coal, which constituted 58% of the mix, up from 24% in the previous year. Meanwhile, the utilization of imported coal reduced dramatically from 58% to 22%.

For the first quarter ending September 2023, Gharibwal Cement reported a slight improvement in capacity utilization, which increased from 51% to 54%. Net sales for this period went up by 14%, reaching Rs. 4,358 million. Despite this growth, net profit and gross profit saw declines, emphasizing ongoing financial pressures.

According to information available from the Pakistan Stock Exchange (PSX), the company is actively investing in new technologies and infrastructural upgrades. Among these projects, the introduction of a new 10,000 tpd production line and several energy efficiency measures are highlighted, such as a solar plant and a cooler retrofit aimed at enhancing operational efficiencies and reducing energy costs.

Gharibwal Cement's strategic adjustments and expansions signify its resilience in a fluctuating economic climate, with a clear focus on optimizing production capabilities and reducing dependence on imported fuels.