Power Cement reports profit after prior year’s loss

April 25, 2025 (MLN): Power Cement Limited (PSX: POWER) has posted a net profit of Rs347.9 million for the nine months ended March 31, 2025, marking a significant recovery from the net loss of Rs1.19 billion reported in the same period last year.

The company’s earnings per share (EPS) rose to Rs0.07 from a loss of Rs1.41 per share, reflecting a strong turnaround in its bottom-line performance.

Revenue from contracts with customers for the nine-month period stood at Rs21bn, reflecting a 15.78% decline from Rs24.94bn recorded during the corresponding period of the previous year.

Despite the fall in revenue, the company managed to reduce its cost of sales by 21.74%, bringing it down to Rs15.21bn, compared to Rs19.43bn last year.

This led to a 5.25% increase in gross profit, which rose to Rs5.8bn.

Selling and distribution expenses declined by 15.69% to Rs1.99bn, down from Rs2.36bn, aided by cost-cutting initiatives.

On the other hand, administrative expenses increased by 31.98%, reaching Rs433.5m, mainly due to higher operational costs.

The company also recorded an impairment loss on trade receivables of Rs12m, while other expenses dropped sharply by 51.40% to Rs84.9m.

Total operating expenses were curtailed by 11.99%, supporting an increase in profit from operations, which stood at Rs3.28bn, up 23.97% from Rs2.64bn in the same period last year.

Finance income grew by 41.40% to Rs29.8m, while finance costs saw a substantial decrease of 34.85%, amounting to Rs2.54bn, reflecting better debt management and lower borrowing costs.

The levy dropped by 40.26% to Rs63.8m, and taxation expenses turned negative, with a charge of Rs350.6m this period compared to a tax credit of Rs159.9m last year.

As a result, net profit after taxation and levy came in at Rs347.9m, compared to a net loss of Rs1.19bn in the same period last year.

Total comprehensive income for the period remained at Rs347.9m, mirroring the post-tax profit figure.

The company’s basic EPS excluding preference dividend stood at Rs0.30, compared to a loss per share of Rs1.07 last year, further underlining the improved financial performance.

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