Lahore: Gharibwal Cement Limited has announced its financial outcomes for the first quarter ending September 30, 2024, reflecting resilient operational performance despite challenging market conditions. The company reported a net sales revenue of Rs. 4.32 billion, slightly down by 0.9% from the previous quarter.
During this quarter, despite a 13.3% decrease in dispatches totaling 257,464 tons, Gharibwal Cement's strategic investments in renewable energy sources like its 12MW solar plant have positively impacted its operational costs. According to information available from the Pakistan Stock Exchange (PSX), this initiative has contributed significantly to reducing the company's power expenses.
The financials revealed a gross profit of Rs. 1.17 billion, up from Rs. 868 million in the corresponding period last year, with EBITDA also rising by 24.1% to Rs. 1.20 billion. This growth has propelled the net profit to Rs. 535 million, a substantial increase of 31.1% quarter-on-quarter, and boosted the earnings per share (EPS) to Rs. 1.34.
Notably, Gharibwal Cement is advancing its technological capabilities by installing an additional 8MW solar system scheduled for commercial operation by March 2025. The company is also in the process of upgrading its cooler, expected to be completed by December 2024. These enhancements are projected to lower production costs for Line I significantly.
In the midst of these upgrades, the company has ensured adequate clinker stock to maintain uninterrupted cement dispatches even as the kiln undergoes temporary shutdowns for retrofitting. Civil works on Line II are progressing well, setting the stage for future capacity expansion.
The company's management remains cautious about the rising costs of sales, which may impact future earnings, despite expecting stable cement demand. Gharibwal Cement continues to express gratitude towards its stakeholders, including bankers, financial institutions, dealers, and customers for their continued support. The dedication of its staff and the trust of its shareholders are also acknowledged as pivotal to its ongoing success.