Karachi October 30 2023: Power Cement net sales revenue for the first quarter of FY-2024 represents an impressive increase of approximately 75 percent as compared to the same period last year.
The increase in revenue is mainly attributable to the increase in clinker exports of 425 percent to 372 thousand tons and local cement dispatches growth of 25 percent to 355 thousand tons.
The overall capacity utilization for the quarter stood at 83 percent as compared to 56 percent in the corresponding period.
The gross profit margin increased to 25 percent as compared to 14.5 percent during the same period last year. The gross profit for the first quarter of FY-2024 surged to PKR 2.4 billion indicating an exceptional growth of around 202 percent as compared to the first quarter of FY-2023. Despite all the challenges on the cost side, the Company has been able to improve its gross margins which is attributable to substantial increase in sales volume, both in the domestic and export markets. Additionally, the Company has maintained healthy margins by effectively managing and retaining favourable pricing structures.
Despite the improvements in revenue and profit margins, due to very high interest rates prevalent in the Country, the financial costs went up to PKR 1.32 billion from PKR 0.88 billion last year, thus the Company has suffered a loss after tax of PKR 470 million for the first quarter of FY-2024.