TC Mar-Apr 2021 Issue

TRADE CHRONICLE
Pakistan records highest monthly growth
in cement dispatches during March 2021
The Pakistan cement sector posted the
highest ever monthly growth of 44.39
percent in March 2021 due to a massive
increase in domestic consumption
and exports. Total Cement dispatches
during March 2021 were 5.373
million tons against 3.722 million tons
dispatched during the same month of
last fiscal year.
According to the data released by the
All Pakistan Cement Manufacturers
Association (APCMA), local cement
dispatches in March 2021 were 4.563
million tons showing a healthy increase
of 41.96 percent compared to 3.214
million tons in March 2020. Exports
also increased significantly by 59.80
percent, from 507,480 tons in March
2020 to 810,962 tons in March 2021.
In March 2021, the cement mills in
North dispatched 3.809 million tons of
Kohat Cement announces
Rs1.059bln net profit
Kohat Cement has posted a net profit
of Rs1.059 billion translating into
earnings per share (EPS) of Rs5.27
for the quarter ended March 31, 2021
compared with the loss of Rs381.08
million in the same period last year.
“The recovery in profitability is likely
a product of increase in domestic
retention, which rose 18 percent
to Rs597/bag, higher domestic
dispatches and lower interest rates,”
Yusuf Rahman at KASB Securities said
in a report.
Total sales for the period under review
clocked in at Rs6.71 billion, up 163
percent compared with sales of Rs2.55
billion in the corresponding period last
year. Record high industry dispatches
and an increase in the company’s
cement to local
markets against
2.749 million
tons in March
2020, registering an increase of 38.52
percent. South-based mills posted
753,704 tons of cement in domestic
markets, which was 62.28 percent
higher than the 464,440 tons of cement
dispatched in March 2020. Exports
from North based mills registered an
enormous increase of 162.58 percent
as the volumes increased from 106,759
tons in March 2020 to 280,330 tons in
March 2021. The South increased by
32.42 percent to 530,632 tons in March
2021 from 400,721 tons during the
same month last year.
During the first nine months of this
fiscal year, total cement dispatches
(domestic and exports) were 43.325
million tons of 16.99 percent higher
than 37.035 million tons of cement
dispatched during the corresponding
period last fiscal year.
From July 20 to March
21, local dispatches
increased by 18.29
percent to 36.182
million tons from 30.588
million tons from July
19 to March 20. Exports
increased from 6.447
million tons from July
19 to March 20 to 7.144
million tons from July 20
to March 21, showing a
production capacity along with
higher domestic retention aided
the overall top-line growth during
the period.
The finance cost declined 32.14
percent to Rs119.27 million due
to low interest regime. “Financial
charges dipped on account of a
lower debt balance resulting from
a significant improvement in the
company’s cash-flows,” Yusuf said.
For the nine-month period ended
March 31, 2021, Kohat Cement
posted a net profit of Rs2.53 billion
translating into EPS of Rs12.60 as
against the loss of Rs283.3 million
and loss per share (LPS) of Rs1.41
in the same period last year. The
company did not announce any
payouts along with the corporate
results.
growth of 10.80 percent.
During the first nine months of the
current fiscal year, North-based mills
dispatched 30.629 million tons of
cement for domestic consumption that
was 17.75 percent higher than the
dispatches during the same period last
budgetary that stood at 26.012 million
tons. Exports from North were 1.911
million tons showing a decline of 0.22
percent over exports of 1.915 million
tons during the same fiscal year.
South-based mills dispatched 5.552
million tons in the domestic market
during the first nine months of the
current fiscal year, which was 21.36
percent higher than the 4.575 million
tons shipped during the corresponding
period of the last fiscal year. The
South exports were 5.232 million tons
registering an increase of 15.46 percent
over exports of 4.531 million tons during
the same period the previous year.
However, this growth was accompanied
by worrisome signs as the rates
of power and coal are consistently
increasing. Cement being an energyintensive
product, the industry is finding
it hard to operate due to continuous
rise in major input cost elements. “The
industry is not demanding any special
favour but wants to be treated at par
with five exporting sectors and import
levies on coal have to be rationalized
as it is the main input of the cement
sector,” added the spokesman.
TRADE CHRONICLE - Mar - Apr - 2021 - Page # 24