Power Cement reports strong turnaround with Rs815m profit

September 02, 2025 (MLN): Power Cement Company Limited (PSX: POWER) has delivered an exceptional financial turnaround, posting a net profit of Rs815 million for the fiscal year ended June 30, 2025, compared to a massive net loss of Rs2.70 billion in FY2024.

The company's Earnings Per Share (EPS) surged to Rs0.44, marking a dramatic recovery from the Loss Per Share (LPS) of Rs2.88 in the previous year.

The cement manufacturer reported a profit before tax and levy of Rs1.57bn in FY2025, representing a remarkable turnaround from the loss of Rs1.92bn recorded in FY2024.

Power Cement recorded net sales revenue of Rs29.52bn during FY2025, compared to Rs31.08bn in FY2024.

Despite the slight revenue decline, the company achieved significant margin improvements with gross profit increasing by 24% to Rs8.4bn from Rs6.79bn in the prior year.

The improvement in profitability was driven by appreciation in selling prices, enhanced operational efficiencies, strict cost control measures, and continued reliance on alternative fuels to mitigate energy cost pressures.

EBITDA improved significantly to Rs5.51bn in FY2025 from Rs3.98bn in FY2024, while operating profit posted strong growth of 52%, reaching Rs4.62bn compared to Rs3.03bn in the previous year. 

A key factor in the turnaround was the sharp decline in finance costs to Rs3.04bn, down from Rs4.95bn in FY2024.

This reduction was primarily attributed to the policy rate reduction to 11%, sponsors' financial support currently standing at Rs15bn, and partial repayment of borrowings.

The outlook for Pakistan's cement industry remains encouraging, supported by the expected revival of infrastructure projects, gradual recovery in private construction, improved financing conditions, and easing monetary policy.

Power Cement's export business is gaining strong momentum with better rates being realized in existing markets while new markets are opening up fresh opportunities for growth.

The company plans to strengthen its presence in established markets while carefully expanding into new regions to improve margins and enhance resilience.

Going forward, Power Cement is focused on driving operational excellence, strengthening cost competitiveness, expanding the use of alternative energy, sustaining profitability and enhancing resilience, and positioning as a leading player in the growing market.

Given the prevailing economic volatility and the company's commitments to cover existing long-term loans, the Board of Directors resolved not to declare any cash dividend or issue bonus shares for the year ended June 30, 2025.

With strategic initiatives in place, management expressed confidence in sustaining profitability, enhancing resilience, and creating long-term value for shareholders while contributing to Pakistan's economic growth.

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