The total profit of 11 out of 19 listed cement producers in Pakistan has increased by 13% year-on-year to US$445.72 million (PKR 46.6bn) in 2014/2015 fiscal year. Total revenue of the 11 firms went up by 3.7% to $1.859 billion (PKR 194.4bn).
The net earnings of the 11 companies that represent 95% of the cement sector's market capitalisation grew by 20% to $130.8 million (PKR 13.6 billion), and the growth in profits was attributed to lower energy costs and higher production. The total export volume declined by 11.7% to 7.2 million tonnes, while domestic cement sales went up by 8.2% to 28.3 million tonnes.
The Pakistan cement sector's sales volume is forecast to grow by 8.8% to 36.8 million tonnes in 2015/2016 due to strong domestic demand led by the China Pakistan Economic Corridor and other mega infrastructure projects. Industry experts also believe the usage of waste heat recovery (WHR) technology as well as lower prices of electricity and imported coal are expected to reduce energy costs of cement producers in the country.
