Karachi February 25 2022: During the period first six months July to December 2021, Pioneer Cement generated net revenue of PKR 14,811.45 million, increase of 58.06 percent over SPLY. 11.31 percent increase in local dispatches coupled with improved retention prices led this enormous topline growth.
During HY-2022, the Company's local sale volumes surged to a new level of 1,755,360 tons (growth: 11.31 percent over SPLY). The Company produced 1,747,927 tons of cement compared to 1,583,321 tons produced during SPLY (growth: 10.40 percent).
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Cement industry made dispatches of 27.46 million tons compared to 28.64 million tons dispatched during the same period last year (SPLY). It comprised of 24.07 million tons of local dispatches (growth: 1.91 percent over SPLY) and 3.39 million tons of exports (decline: 32.47 percent over SPLY).
Cost of sales for the period under review increased by PKR 3,340.15 million (40.58 percent increase over SPLY). This increase is attributable to higher input costs, mainly on account of hike in energy prices globally, and is also induced by 10.57 percent volumetric growth. To mitigate the adverse impact of increased energy cost, management has taken various measures by partially substituting costlier imported coal with cost-effective Local and Afghan-origin coal and also through placing maximum reliance on captive power generation comprising of Waste Heat Recovery Power Plants and Coal Fired Power Plants.
Above-mentioned factors have resulted in overall improvement in gross margins for HY-2022 to clock in at PKR 3,239.88 million (21.87 percent of net sales) compared to PKR 1,139.18 million (12.16 percent of net sales) during SPLY. Finance cost for the period under review increased from PKR 838.68 million during SPLY to PKR 1,172.78 million; an increase of PKR 334.10 million which mainly relates to higher utilization level of working capital facilities. Moreover, finance cost for the current period also includes charge for financing facilities obtained for installation of power plants, which during the comparative period was capitalized as borrowing cost. Profit before tax (PBT) for the period under review amounted to PKR 1,788.16 million (PBT margin: 12.07 percent) compared to PKR 345.40 million earned in SPLY (PBT margin: 3.69 percent) translating into EPS of PKR 5.03, an increase of PKR 2.36 per share over SPLY.