Karachi: The cement industry in Pakistan is poised for mixed earnings performance in the second quarter of fiscal year 2025, with DG Khan Cement Company Ltd (DGKC) and Kohat Cement Company Ltd (KOHC) projected to report increases, while Attock Cement Pakistan Ltd (ACPL) faces a decline. The anticipated earnings are influenced by fluctuating prices and costs, as well as varying tax rates.

According to a statement by JS Global, KOHC and DGKC are expected to benefit from higher retention prices in the North region and reduced costs due to Afghan and local coal. KOHC is projected to post an earnings per share (EPS) of Rs13.46, reflecting a 19% year-over-year increase. DGKC's EPS is anticipated to rise significantly, reaching Rs4.51, which marks a fivefold year-over-year growth.

In contrast, ACPL is expected to experience a decrease in earnings, with an EPS forecasted at Rs1.91, representing a 47% drop from the previous year. This decline is attributed to narrower profit margins and a normalized effective tax rate, which was 4% in the second quarter of fiscal year 2024.

Cement prices in the North region have recently stabilized after a period of decline in late December and early January. Industry experts predict that prices will strengthen as demand rises during the summer months, alongside anticipated monetary easing. DGKC remains the preferred stock pick among analysts, given the current market conditions and expected financial performance.