Investor Presentaiton
Cement
PACRA
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Financial Risk-Working Capital
The sector's working capital (WC) days were recorded at ~85 during FY20 (FY19: ~78 days) mainly due to increase in receivable days - ~14 days
in FY20 (~11 days in FY19). The sector experienced delays in payments due to halt in production activity in 4QFY20 after the imposition of
Covid-19 lock down.
The resumption in construction activities post Covid-19 lock down resulted in revived construction activity in the country. Eventually, inventory
days reduced substantially from ~108 days in FY20 to ~98 days in 1HFY21.
Reduced inventory days results in improved working capital cycle of the sector as the WC days of the sector reduced to ~73 days in 1HFY21
from ~84 days in FY20.
120
100
80
60
60
40
40
20
0
Working Capital Management
JJJJJJ
FY16
FY18
FY17
FY19
Payable Days
■Receivable Days
I Inventory Days
Working Capital Days
FY20
1HFY21
Source: APCMA, PBS, Companies Financial, PACRA Internal Database 14View entire presentation