Karachi, As the third fiscal quarter of 2024 approaches, major cement companies including Lucky Cement, MLCF, PIOC, and KOHC are expected to report significant declines in earnings. The anticipated drops are largely due to reduced sales volumes and contracting gross margins across the industry.

According to AKD Securities Limited, Lucky Cement is poised to announce its 3QFY24 results on April 26th, with projected earnings of PKR 19.6 per share, down 15% from the previous quarter. The decline is attributed to a 9% fall in topline and a 10% decrease in sales volume, although some losses are offset by a 7% increase in other income, including dividends from Lucky Core Industries.

Similarly, MLCF is expected to report a 33% quarter-on-quarter decline in earnings per share to PKR 1.4 on April 25th, driven by a 15% reduction in topline and a contraction in gross margins due to rising local coal prices. PIOC is also facing a downturn, with earnings projected to drop 29% to PKR 5.3 per share due to a 16% decrease in topline and a decline in sales volumes.

KOHC is expected to experience a 21% decline in earnings per share to PKR 9.0, primarily due to an 18% reduction in sales volumes and increased power costs. Despite these challenges, KOHC’s gross margins are showing resilience, helping to mitigate some of the earnings pressure.

These reports reflect broader industry challenges, including elevated inflation and rising operational costs. However, the firms are anticipated to navigate through these issues with strategic adjustments in pricing and cost management.