Karachi: The Thatta Cement Company Limited has released its annual report for the financial year ending June 30, 2026, highlighting notable changes in production and financial performance metrics. The report, dated November 6, 2026, details the company's strategic maneuvers amid a challenging economic landscape influenced by global geopolitical tensions and domestic policy shifts.
In the past year, Thatta Cement reported a 5.52% increase in clinker production, totaling 438,813 metric tons, while cement production saw a 10.5% reduction, dropping to 450,150 metric tons. Cement dispatches also decreased by 12.08%, amounting to 447,099 metric tons. This decline is attributed to a contraction in exports, particularly to Afghanistan, where border closures caused a 52% decrease in sales.
Financially, the company experienced a downturn, with net sales falling to Rs. 6.79 billion from the previous year's Rs. 7.57 billion. Gross profit also declined to Rs. 1.48 billion. Despite these setbacks, the company achieved a profit before tax of Rs. 2.85 billion, supported by a strategic focus on financial management, including a significant Rs. 5.50 billion Sukuk issuance.
According to information available from the Pakistan Stock Exchange (PSX), the company's shares in Pakistan Services Limited faced legal challenges, but management remains confident in its ownership rights. The shares, acquired at Rs. 710 each, now hold a fair value of Rs. 944.
The cement industry, categorized under the designated market category, witnessed a moderate recovery in domestic demand, rising by 9% during FY2026. However, overall cement exports fell by 2% due to external challenges. The Prime Minister's subsidized financing scheme contributed to domestic demand growth, despite the industry's ongoing struggles with high energy costs and logistical hurdles.
In response to environmental concerns, Thatta Cement has implemented rigorous measures to minimize its ecological footprint, including the installation of de-dusting equipment and adherence to regulatory standards. Additionally, the company has made strides in renewable energy by commissioning a 5 MW solar power plant and a 4.8 MW wind power project, with plans to expand further.
The company has also prioritized corporate social responsibility, focusing on health and safety awareness and environmental sustainability. Initiatives such as the establishment of a Silicosis Diagnostic and Health Screening Center and the planting of 5,000 trees underscore its commitment to community welfare and ecological stewardship.
In a strategic move, the Board of Directors proposed a 25% cash dividend exclusively for minority shareholders, allowing the company to reinvest funds into high-impact projects, supported by the majority shareholders' waiver of their dividend rights.
As Thatta Cement navigates a complex economic environment, its focus on sustainability and financial resilience positions it for future growth and stability in the evolving cement sector.