Karachi: Power Cement Limited has announced its financial results for the half-year ended December 31, 2024, revealing a notable recovery in its financial performance during the second quarter. The company’s Board of Directors, in a meeting held on February 12, 2025, via video link, confirmed that no cash dividends, bonus shares, or right shares would be distributed for the period.
According to the report, Power Cement’s net sales revenue for the half-year was Rs. 13.82 billion, marking an 18% decline from the same period last year, primarily due to sluggish local demand in the first quarter. Despite this, the second quarter saw a 23% increase in net sales revenue to Rs. 8.78 billion, driven by a recovering domestic market. Gross profit for the half-year remained stable at Rs. 3.75 billion, while operating profit rose by nearly 9% to Rs. 2.10 billion, underpinned by improved pricing and cost efficiencies.
Finance costs saw a significant reduction, contributing to a profit before taxation and levy of Rs. 214.43 million, a turnaround from the Rs. 602.47 million loss recorded in the corresponding period of the previous year. Profit after taxation and levy stood at Rs. 32.37 million, recovering from a loss of Rs. 469.82 million in the same period last year. The company’s capacity utilization for the half-year was reported at 68%, down from 76% in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the company achieved notable financial discipline in the second quarter, with profit after taxation and levy reaching Rs. 524.52 million, a substantial improvement from Rs. 0.37 million in the previous year. This recovery has been attributed to effective cost control measures and a reduction in finance costs by approximately 35.3%, equivalent to Rs. 430 million during the quarter.
Despite the challenges, Power Cement’s future outlook remains positive. Pakistan’s GDP growth is projected at 3% for FY25 and 4% for FY26, with inflation expected to average between 5.5% and 7.5%. The current account deficit is anticipated to remain low at 0.6% of GDP, providing external stability. The government’s commitment to reducing energy costs and implementing monetary easing measures is seen as a positive development for the cement industry.
Overall, the results reflect Power Cement’s resilience in challenging market conditions, with the recent performance offering a positive outlook for sustainable growth in the coming months. The company’s Board expressed gratitude to employees and stakeholders for their continued support and contributions.