Power Cement posts Rs32.4mn profit in H1FY25, reversing loss

February 13, 2025 (MLN): Power Cement Limited (PSX: POWER) has reported a net profit of Rs32.4 million for the half-year ended December 31, 2024, marking a significant turnaround from the loss of Rs469.8mn in the same period last year.

The company’s earnings per share (EPS) improved to Rs0.15 from a loss of Rs0.64 per share, signaling a strong recovery in operational performance despite revenue pressures.

Power Cement’s revenue from contracts with customers stood at Rs13.82 billion in H1 FY24, reflecting a 17.96% decline from Rs16.85 billion in H1 FY23.

The decline in revenue was attributed to lower sales volumes and pricing pressures in the cement industry.

However, cost optimization efforts led to a 21.6% reduction in the cost of sales, bringing it down to Rs10.08bn, which helped mitigate the impact on gross profit.

As a result, gross profit for the period stood at Rs3.75bn, a marginal decline of 6.2% compared to Rs3.99 billion in the corresponding period last year.

Selling and distribution expenses saw a notable reduction of 10.77%, dropping to PKR 1.37 billion from PKR 1.53bn in H1 FY23.

However, administrative expenses surged by 32.57% to Rs289.91mn, reflecting increased operational costs.

A significant improvement came from other income, which amounted to Rs26.29mn compared to an expense of Rs309.7mn in the previous period, supporting overall profitability.

The company’s finance cost dropped by 25.27% to Rs1.90bn from Rs2.55bn in H1 FY23, driven by improved financial management and debt servicing strategies.

Finance income also grew by 23.38% to Rs14.48mn.

Consequently, profit before taxation and levy rebounded to Rs214.43mn from a loss of Rs602.47mn in the same period last year.

Taxation expenses for H1 FY24 stood at Rs135.73mn, compared to a tax reversal of Rs209.95mn in H1 FY23.

The levy also declined by 40.07% to Rs46.33mn.

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