Karachi: Power Cement Limited has reported a notable turnaround in its financial performance for the nine months ended March 31, 2025, as the company transitioned from a loss-making position to posting a profit after tax. This recovery comes despite a decline in net sales revenue, which fell to Rs. 21 billion from Rs. 24.9 billion in the same period last year.

The cement industry faced significant challenges during this period, with total cement dispatches decreasing by 0.4% year-on-year to 34 million tons. Domestic dispatches saw a sharp drop of 5.4%, reaching 27.5 million tons, due to subdued local demand. However, export dispatches experienced a robust growth of 28%, demonstrating stronger international demand. According to information available from the Pakistan Stock Exchange (PSX), these figures reflect broader industry trends.

Power Cement Limited's capacity utilization declined to 61% from 76% in the previous year, primarily due to lower dispatch volumes driven by reduced domestic demand and decreased export prices. Despite these setbacks, the company managed to improve its gross profit, which rose to Rs. 5.8 billion, up from Rs. 5.5 billion, thanks to enhanced cost efficiencies and lower power costs.

A significant factor contributing to the company's improved financial performance was a 35% reduction in finance costs, down to Rs. 2.5 billion from Rs. 3.9 billion. This reduction was facilitated by lower interest rates and support from sponsors. Consequently, Power Cement Limited reported a profit before taxation and levy of Rs. 762 million, compared to a loss of Rs. 1.24 billion in the same period last year. The profit after taxation and levy stood at Rs. 348 million, marking a recovery from a loss of Rs. 1.19 billion.

The company's performance in the third quarter, ending March 31, 2025, was particularly promising, with net sales revenue of Rs. 7.18 billion and a gross profit of Rs. 2.05 billion. This was attributed to a significant reduction in finance costs and improved operational efficiencies, aligning with the growth trajectory observed in the second quarter.

Looking forward, Power Cement Limited is optimistic about future prospects, with GDP growth projected at 3% in FY25 and 4% in FY26. Inflation is expected to average between 5.5% and 7.5%, influenced by global commodity trends and domestic policy adjustments. The company anticipates that continued efforts to strengthen construction, housing, and infrastructure development will help revive cement demand and contribute to a supportive environment for the industry. The Board remains confident that these factors, combined with comprehensive reforms, will enhance investor confidence and economic resilience.