Karachi: The Board of Directors of Thatta Cement Company Limited has released its review alongside the un-audited condensed interim financial statements for the half year ending December 31, 2024. The report highlights considerable advancements in the company's production and financial metrics, amid a backdrop of improving national economic indicators.
On December 31, 2024, Thatta Cement's clinker production reached 198,592 metric tons, marking a 34.78% increase over the previous year's 147,345 metric tons. Cement production also saw a rise of 12.61%, totaling 251,113 metric tons compared to 222,987 metric tons in 2023. Cement dispatches increased by 12.28% to 253,568 metric tons, while clinker dispatches were nonexistent compared to 4,555 metric tons in the previous year.
Meanwhile, Pakistan's economy has shown signs of recovery during the first half of FY2025. Inflation has eased to single digits, and key industrial sectors have experienced growth. The State Bank of Pakistan reduced the policy rate to 12% and projected further cuts. The country's current account reported a surplus of USD1.21 billion from July 2024 to June 2025, contrasting sharply with the USD1.39 billion deficit during the same period last year.
According to information available from the Pakistan Stock Exchange (PSX), Thatta Cement's sales revenue surged by 23.23% due to an enhanced market penetration strategy, resulting in local sales volume growth. The company's gross profit margin improved significantly, rising from 21.16% to 31.21% year-over-year. Profit before taxation stood at Rs. 1,721.95 million, while earnings per share increased to Rs. 13.31 from Rs. 3.64 in the previous year.
The cement industry overall, however, faced a 10.4% decline in local demand, dropping to 18.12 million tons from 20.24 million tons last year. Nonetheless, exports grew by 31.69% to 4.81 million tons, which helped mitigate the industry's total volume decrease of 3.97%, settling at 22.93 million tons compared to the previous year's 23.89 million tons.
Thatta Cement's financial review for the half year ending December 31, 2024, showed net sales of Rs. 3,849.59 million, up from Rs. 3,123.97 million the previous year. The company attributes the improved cost-to-sales ratio, which fell from 78.84% to 68.79%, to its shift towards cheaper domestic coal sources.
In line with its sustainability goals, Thatta Cement has invested in renewable energy projects, successfully installing a 5 MW solar power plant and initiating a 4.8 MW wind power project, expected to be operational by the third quarter of FY2025.
The company's interim financial statement indicates total assets of Rs. 8.20 billion as of December 31, 2024, compared to Rs. 7.63 billion in June 2024. Its equity and liabilities reflect a similar growth, with current liabilities decreasing from Rs. 3.05 billion to Rs. 2.56 billion, illustrating a strengthening financial position.
Thatta Cement continues to operate within its core market categories, focusing on cement manufacturing and power generation, as it navigates through an economically transformative period in Pakistan.