Karachi: Attock Cement Pakistan Limited has reported a mixed financial performance for the fiscal year 2024, reflecting the broader challenges faced by the Pakistani cement industry. The company's profit for the year surged by 135% to Rs. 3,566.52 million compared to Rs. 1,516.06 million in the previous year, primarily driven by a significant divestment gain. However, the operational profit witnessed a decline of 37% to Rs. 1,984.02 million from Rs. 3,167.77 million in FY 2023.

As of the first quarter of 2024-25, the south market in Pakistan registered a negative growth of 29% amid depressed demand. The industry anticipates potential improvements in demand in the coming months, supported by easing interest rates and lower inflation. According to information available from the Pakistan Stock Exchange (PSX), total local dispatches for FY 2024 declined by 5% to 38.2 million tons, with the south region experiencing a sharper decline of 9% compared to a 4% decrease in the north.

Export dispatches, however, presented a more optimistic picture with a 55% increase, driven by a 61% rise in exports from the south and a 36% increase from the north. The company also reported a substantial 77% rise in clinker exports, contributing to a 57% increase in total exports to 1,095,565 tons.

Attock Cement's clinker production rose by 20% to 2,375,379 tons, but cement production decreased by 9% to 1,361,223 tons. Local cement dispatches fell by 9%, while export cement dispatches decreased by 17%. Despite these mixed results, overall dispatches increased by 14% to 2,334,719 tons.

The company's turnover for FY 2024 stood at Rs. 28,536.53 million, while gross profit declined by 7% to Rs. 5,294.01 million. The earnings per share (EPS) also saw a significant increase, rising to Rs. 25.95 from Rs. 11.03 in the previous year.

Efforts to reduce production costs are ongoing, including the induction of a 4.8 MW windmill and increased use of alternative, cheaper fuel sources. On the export front, the company is working to secure orders with a positive contribution margin despite low prices.