Karachi May 6 2022: Power Cement Limited has successfully resumed operations from May 2 2022 as per company filming to the exchange.
During the shut down period Line II of the company remained fully operational and remains orders were fulfilled by purchasing clinker from the market.
During the period from July 2021 to March 2022, the production of clinker decreased by 390,092 metric tons. The overall capacity utilization of clinker stood at 60% as compared to 76% in the corresponding period.
The capacity utilization of new Line-III stood at 83% as compared to 105% in the corresponding period. The low utilization level was due to the fact that a component of the new Line III of the Company’s plant, fully covered under warranty, was damaged at the end of January 2022. Due to the warranty coverage, plan to carry out the repair work locally and the availability of the stock sufficient to cover over two-months’ sale, no material financial impact was anticipated. The planned periodic maintenance of the plant was also performed during this period.
The net sales revenue increased by 22% during the period mainly due to increase in local selling prices.
However, the export sales remained under pressure primarily due to unprecedented high freights and enhanced production costs owing to the ever increasing coal prices.
The Gross Margin of the Company reported at 17% as compared to 24% in the corresponding period primarily due to increase in production costs and timing difference in passing the impact to the consumers.
The Company realised after tax profit of PKR 6.8 million during the period under review as compared to PKR 260 million reported during the same period last
year.
Power Cement Limited was incorporated in Pakistan as a private limited company on December 1, 1981 and was converted into a public limited company on July 9, 1987. The Company’s principal activity is manufacturing, selling and marketing of cement.
