Karachi: The Board of Directors of Thatta Cement Company Limited has reported a solid financial performance for the nine-month period ending March 31, 2025, attributing the gains to the stabilization of Pakistan's economy and strategic internal measures.
The company, in its directors' review, noted that Pakistan's economic landscape has shown resilience, marked by a narrowing fiscal deficit, a current account surplus, and increased foreign investment. These factors have contributed positively to the broader market sentiments, as evidenced by the bullish trend in Pakistan Stock Exchange (PSX).
According to the company, its local cement dispatches saw a decrease of 4.60% during the nine-month period compared to the same period last year. Despite this reduction, the overall performance improved due to an effective market penetration strategy which led to a 3.76% increase in sales revenue. The gross profit margin also witnessed an improvement from 27.78% to 28.92%. The company reported a profit before tax of Rs. 2,416.061 million.
The local cement industry's dynamics during the fiscal period reflected a demand reduction of 6.61%, with total local cement consumption at 27.461 million tons, down from 29.403 million tons in the prior year. However, export figures surged by 28.08%, reaching 6.532 million tons. Consequently, the overall industry volume slightly decreased by 1.48%, standing at 33.933 million tons compared to 34.503 million tons last year.
Thatta Cement's operational cost efficiency improved, with a cost-to-sales ratio decrease to 71.08% from 72.22% from the previous year, primarily due to a shift towards utilizing more cost-effective domestic coal sources.
In alignment with its sustainability goals, Thatta Cement commissioned its first wind power project, a 4.8 MW facility, and a 5 MW solar power plant, both of which emphasize its commitment to renewable energy. These projects commenced operations on April 3, 2025.
The company also strengthened its investment portfolio by acquiring additional shares in Thatta Power (Pvt) Ltd, increasing its stake to 88.52%. Furthermore, it fully acquired Minsk Work Tractors and Assembling (Private) Limited with an investment of Rs. 50 million, thereby establishing it as a wholly-owned subsidiary.
M/s. Joseph Lobo (Pvt.) Ltd. conducted a valuation of the company's assets, indicating a market value of Rs. 10,030 million for its property, plant, and equipment. However, this valuation has not been reflected in the company's financial statements, which remain on a cost basis. The market capitalization of Thatta Cement as of March 31, 2025, stood at Rs. 21,165 million.
The company's recent attainment of the CE Certification from the Council for Quality and Environment - Turkey, enhances its operational standards and opens up new export opportunities in European and other developed markets.
Looking ahead, Pakistan's economy is expected to grow at a stable rate of 2.5%, with inflation projected at 6.0% for 2025, supported by the International Monetary Fund's macroeconomic policies.
According to information available from the Pakistan Stock Exchange (PSX), the optimism in the macroeconomic environment is anticipated to support further growth and stability for Thatta Cement in the coming months.
Acknowledging its stakeholders, the company's directors expressed gratitude for the continued support from shareholders, financial institutions, and customers, while recognizing the dedication of its employees in driving the company's success.