Cement sector profit may rise 19% in 4QFY25

July 16, 2025 (MLN): Cement sector is expected to report a profit after tax (PAT) of approximately Rs15.8 billion for 4QFY25, reflecting a 19% year-on-year (YoY) increase, largely driven by higher retention prices, according to Insight Securities.

However, on a quarter-on-quarter (QoQ) basis, PAT is anticipated to decline by 28% due to a sharp 75% drop in other income.

Net sales are projected to grow 13% YoY and 8% QoQ to Rs108.4bn, supported by stronger retention prices.

This has led to a notable expansion in gross profit, which surged 25% YoY and 12% QoQ to Rs34.9bn.

Gross margins are expected to improve to 32% in 4QFY25, compared to 29% in 4QFY24 and 31% in the previous quarter, aided by declining coal prices and grid electricity costs.

Despite an 8% YoY increase in finance costs to Rs3.8bn, QoQ expenses dropped 33%, reflecting lower interest rates and reduced debt levels.

Admin and distribution expenses saw moderate increases of 11% and 7% YoY, respectively, while taxation decreased by 22% YoY but rose 12% QoQ.

Company-wise expectations for earnings per share (EPS) in 4QFY25 are: LUCK (Rs3.6), DGKC (Rs5.2), MLCF (Rs2.7), FCCL (Rs1.4), PIOC (Rs6.2), and ACPL (Rs4.9).

In terms of shareholder returns, LUCK, DGKC, FCCL, PIOC, and ACPL are also expected to declare dividends of Rs4.0, 3.0, 1.5, 10.0, and 3.0 per share, respectively.

Full-year FY25 PAT stands at Rs71.1bn, up 35% from FY24’s Rs52.7bn, highlighting the sector's strong annual performance despite short-term fluctuations.

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