Displaying items by tag: Pakistan

Pakistan: DG Khan Cement recorded a 22% year-on-year rise in earnings in the first quarter of the 2025 financial year, to US$2.88m. This came despite a 7% drop in sales, to US$54.9m, and a 12% drop in cement sales volumes, to 1.18Mt.

Pakistan: Lucky Cement has announced its reappointment of Muhammad Sohail Tabba to the role of chair of its board. The appointment will be effective through to 2027. Tabba has served in the role since 1993. He currently holds other executive positions in the textiles and energy sectors, at Gadoon Textile Mills, Lucky Textile Mills and Yunus Energy.

Meanwhile, Muhammad Ali Tabba will also continue to occupy the position of CEO through to 2027. He was first appointed to the role in 2005.

Pakistan: The Senate Standing Committee on Science and Technology heard on 10 October 2024 that some cement producers have obtained stay orders from courts against the Pakistan Standards and Quality Control Authority over unpaid marking fees. The marking fees equate to 0.1% of cement’s ex-factory price, and go towards ensuring that cement conforms to standards. Pakistan Today News has reported that only two producers have regularly paid the fee, with combined defaults valued at US$18m across the entire industry. A delegation from Saudi Arabia reportedly queried authorities about the lack of clear labelling.

Science and Technology Committee chair Kamil Ali Agha reportedly said "No one knows what quality of cement is being produced by local manufacturers.”

Pakistan: Pakistan Railways (PR) is planning the construction of a 105km railway line that will link the Thar Coal mines with a Port at Qasim. The project is being financed by the Sindh state and national governments and will be completed by October 2025.

An official from the Ministry of Railways said that the line would bolster the nation's bulk transportation capabilities, aligning with broader economic growth objectives and facilitating coal transportation across the country, supporting key industries like cement production. After the completion of the project, the rail network is expected to have the capacity to transport 10Mt/yr of coal, shifting Pakistan's reliance from imported to domestic coal sources.

Pakistan: Cement exports from Pakistan significantly increased in September 2024, rising by 71% year-on-year to 0.98Mt, compared to 0.57Mt in September 2023. Despite this growth in exports, domestic cement sales continued to decline, falling by 18% in September 2024. Overall, cement sales for the month decreased by 5.6%, totalling 3.54Mt compared to 3.75Mt in September 2023. From July to September 2024, domestic sales were down by 20%, totalling 8.13Mt, while exports rose by 22%, reaching 2.14Mt.

Pakistan: Dewan Cement reported a profit after tax of US$329,000 for the quarter ending June 2024, marking a 47% year-on-year decline compared to US$619,000 earned in the same period in 2023. Despite a significant improvement in gross margins, the company recorded a net loss of US$1.83m for the full financial year 2024, slightly less than the US$2.11m loss in the financial year 2023. Quarterly sales rose by 3.4% to US$19.14m, with gross profit increasing significantly by 106.5% to US$1.06m in the quarter.

Pakistan: The cement industry in Pakistan is experiencing a significant decline, with local dispatches for September 2024 projected to fall by 22% year-on-year to approximately 2.79Mt. This decline is reportedly due to a slowdown in construction activities, exacerbated by rising costs of construction materials. According to Topline Pakistan Research, local cement sales for the first quarter of the financial year 2025 are also expected to decrease by 21% compared to the same period in 2023.

Despite a slight month-on-month increase in dispatches from 2.75Mt in August 2024, the year-on-year data highlights a continuing slump in construction and a sharp increase in cement prices. However, there cement exports are projected to increase by 27% month-on-month and 36% year-on-year. Total cement sales for September are estimated at 3.56Mt, marking a 14% decline year-on-year but a 6% increase from August 2024. Capacity utilisation in the sector is estimated at 52% for September 2024, an improvement from August 2024’s 47% but still below the 60% recorded in September 2023.

Pakistan: Maple Leaf Cement has reported a consolidated profit after tax of US$5.6m for the quarter ending June 2024, with sales revenue increasing by 5% to US$56.4m from US$53.8m year-on-year. The cost of sales dropped by 10%, boosting the gross profit by 44% year-on-year to US$21.7m.

Pakistan: Recent tax increases on cement have been blamed for a significant decline in demand, with cement despatches falling by 25% in August 2024 compared to August 2023. According to the All Pakistan Cement Manufacturers Association (APCMA), total cement dispatches during August 2024 were 3.37Mt, down by 34% year-on-year from 4.53Mt.

For the first two months of the 2024 financial year, total cement despatches were 6.38Mt, a decline of 18% year-on-year from 7.76Mt in 2023. In August 2024, domestic dispatches decreased by 21% year-on-year to 5.21Mt, and exports dropped slightly by 2% to 1.16Mt.

A spokesperson for the APCMA said "In the current budget, excise duty on cement doubled, alongside significant increases in federal and provincial taxes," adding that no other industry has been taxed as heavily. "The government must reassess its taxation policies to support the struggling construction sector, which is critical for employment and economic stability."

Pakistan: Fauji Cement recorded sales of US$287m in the 2024 financial year, which ended on 30 June 2024. This corresponds to year-on-year growth of 18% from US$244m in the previous financial year. The company’s operating costs rose by 14% to US$195m. Nonetheless, it succeeded in growing its net profit by 10%, to US$29.5m.