Investor Presentaiton
Cement
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Business Risk
Total revenue of the sector was recorded at PKR~241,538 million
during FY20 (FY19: PKR~289,715 million) with YoY decrease of
~17%. Low retention prices during FY20 amid high competition led
to decrease in sector's revenue despite ~2% increase in total
dispatches.
FY20 has been a tough year for the Sector in terms of pressure on
the margins on account of rising exchange rate, interest costs (for
most part of the year) and subdued demand. GP margins plunged
to as low as ~5% from ~22% in FY19. The benefit of low average coal
prices during FY20 was eroded by high average exchange rate
during the period. Bottomline of the Sector also turned negative as
a consequence of shrunk demand and increased costs.
Despite the dip, the Sector's indicators have turned around well in
1HFY21 with GP margin recording a ~27% growth during 1HFY21.
Increased retention prices, low coal prices and stable exchange rate
during 1HFY21 are the major contributors.
Sales
Cost of Sales
Gross profit
50%
40%
PACRA
Figures in PKR mln
Company
Sector: Financial Highlights
Operating Expense
Operating Profit
Finance Cost
12,008
88,228
3,480.0
Profit/(Loss) before Tax
Taxation
Profit/(Loss) after Tax
FY16
FY17 FY18 FY19
226,908 246,538 258,349 289,715
126,672 151,347 181,004 224,575
100,236 95,191 77,345 65,140
12,872 14,243 13,695
82,319 63,102 51,445
2,379 3,001 9,084
84,748 79,940 60,101 42,361
25,538.0 23,022 5,669 8,770
59,210 56,918 54,432 33,591
FY20 1HFY20 1HFY21
241,538 132,433 167,734
229,982 125,245 129,999
11,556 7,188 37,735
11,440
116
575
17,815 9,603 1,572
(17,699) (9,028) 2,021
(4,700) (2,705) 9,729
(12,999) (6,323) 28,006
6,613
4,219
5,959
30%
20%
10%
0%
FY16
FY17
-10%
Gross Profit
Sector Profitability
FY18
FY19
Operating Profit
Net Profit
FY20
1HFY21
Source: APCMA, PBS, Companies Financial, PACRA Internal Database 12View entire presentation