Karachi, The latest financial forecasts for key players in Pakistan's cement industry suggest varied performance in the upcoming quarterly earnings reports. Fauji Cement Company Limited (FCCL), D.G. Khan Cement Company Limited (DGKC), and Cherat Cement Company Limited (CHCC) are all poised to release their third-quarter financial results for fiscal year 2024, with analysts predicting changes in profitability largely due to shifts in gross margins and sales volumes.

According to AKD Securities Limited, FCCL is expected to announce a decrease in net profit after tax (NPAT) to PKR 1.8 billion for the third quarter, down from PKR 2.7 billion in the previous quarter, with earnings per share (EPS) also falling to PKR 0.73 from PKR 1.1. This decline is primarily attributed to a contraction in gross margins and a reduction in cement offtake volumes. Despite this, the company's nine-month earnings per share are expected to show a slight year-over-year increase.

In contrast, DGKC is anticipated to report a significant quarterly rise in earnings, with a projected EPS of PKR 1.49 compared to PKR 0.92 in the prior quarter. This improvement is credited to enhanced gross margins and a decrease in financial charges, despite an 18.7% drop in revenue due to lower sales volumes.

CHCC is also expected to see a drop in its quarterly earnings with an EPS of PKR 6.4, down from PKR 9.6, reflecting a downturn in sales and a contraction in gross margins influenced by rising gas prices. However, like FCCL, CHCC’s earnings for the nine-month period are projected to increase year-over-year due to overall improvements in gross margins and a reduction in financial charges.

The varied forecasts for these companies highlight the ongoing challenges and opportunities within the cement sector, driven by fluctuating costs and demand dynamics in the market.