Karachi September 6 2021: Thatta Cement has successfully completed in-house modifications and improvements in processes of existing plant resulting in increase of cement and clinker capacity by 112k tons and 118k tons respectively, according to information shared by the company at Pakistan Stock Exchange.
“By the Grace of Allah Almighty, trials and testing process have been successfully completed by our technical team”, says Chief Executive Officer Muhammad Aslam Shaikh.
Due to aforesaid modifications and improvements, the total per annum production capacity of clinker and cement has now been increased from 548,400 tons to 660,000 tons and from 575,820 tons to 693,000 tons respectively, based on 300 operational days per year.
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The stock rallied more than 50% since January 2021, however management is unaware of any reason for such an extraordinary movement in share price and volumes of the Thatta Cement
During the first nine months of fiscal year 2021, Thatta cement showed commendable performance and succeeded in achieving significant growth in the local dispatches. Local clinker and cement dispatches of your company rose 45.26% and 24.08% respectively in comparison with corresponding period last year. Moreover, during the period ended, the Company achieved 59.48% overall clinker production capacity resulted in 244,631 tons of clinker against 56.20% capacity utilization with clinker production of 231,168 tons in the same period last year.
During the first nine months of fiscal year 2021, local sales of the company in terms of volume increased by 27.44% as compared to corresponding period last year. Increase in local sales volumes resulted in growth of revenue from local sales by 25.74% as compared to corresponding period. However, overall revenue of the company is picked up by 13.42% in comparison with same period last year.
Thatta showed improved sales performance as compared to corresponding period last year and successfully retained its market share in the South Region despite tough market conditions due to COVID-19 coupled with unprecedented monsoon rains in the province of Sindh during the period under review.
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Cost to Sales ratio has decreased to 85.61% during the period as compared to 93.56% in the corresponding period last year. The main reason of decrease in Cost to Sales ratio is due to management’s focus on securing local sales business at better margins. In addition to this, decline in Cost of Sales is due to decrease in per unit cost of power, coal and other input costs during the period under review as compared to corresponding period.
Selling and distribution cost decline by 20.87% mainly due to low exports of clinker as compared to corresponding period. Finance cost is also decreased due to efficient utilization of resources and reduction in discount rate from 13.25% to 7.00% as compared to corresponding period.
