Cement Sector Performance Overview for Third Quarter of FY25
In the latest financial updates, key players in Pakistan’s cement industry reported strong earnings growth, reflecting an overall positive trend despite market challenges.
An overview of some companies is:
Maple Leaf Cement (MLCF)
It reported an impressive 86% year-over-year surge in net profits, reaching PKR 2.8 billion for 3QFY25. The company’s revenue grew by 4%, totaling PKR 16.6 billion, fueled by higher cement prices and increased sales volumes. Gross margins also saw significant improvement, climbing by 5.6 percentage points to 35.5%. This positive performance was further supported by a reduction in distribution expenses and finance costs, positioning MLCF for stable growth despite a market rally that led analysts to revise their outlook to ‘Neutral.’
Fauji Cement (FCCL)
Fauji Cement posted a robust 33.57% growth in net profit for the nine months ending March 31, 2025, reaching PKR 9.41 billion. This was driven by a 13.05% increase in net revenue, which rose to PKR 67.15 billion. Stronger pricing strategies, better operational efficiency, and cost controls underpinned the company’s performance. However, a slight increase in tax expenses and higher finance costs amid rising interest rates tempered the results. Despite these factors, FCCL remains a leading player in Pakistan’s north zone cement market, with a stable outlook.
Power Cement (POWER)
It experienced a remarkable turnaround, transitioning from a net loss of PKR 1.19 billion in the previous year to a net profit of PKR 347.9 million for the nine months ending March 31, 2025. Despite a decline in revenue by 15.78%, the company managed to cut costs significantly, reducing the cost of sales by 21.74%. Lower finance costs and a decrease in operating expenses were key contributors to this recovery. This recovery highlights Power Cement’s improved debt management and operational cost control.
Overall, these results reflect a positive trajectory for the cement sector, with companies navigating market challenges with the latest cement rates in Pakistan, cost efficiency, and financial discipline.
