Lahore: Maple Leaf Cement Factory (MLCF) recently shared insights from its corporate briefing, highlighting a notable 20% increase in consolidated earnings for fiscal year 2024, amounting to Rs6,891 million. However, the company experienced a 17% year-on-year decline in earnings for the first quarter of fiscal year 2025, reporting Rs1,343 million in profits.

According to JS Global, MLCF disclosed that the average retention price for local grey cement during fiscal year 2024 was Rs14,887 per ton, while the current retention price stands at Rs17,500. The average power cost remained consistent at Rs19 per kWh, with 94% of the company's electricity sourced from captive power, including solar and waste heat recovery systems. The firm's current fuel mix consists of 29% alternative fuels and 71% pet coke, reducing the average fuel cost to Rs35,000 per ton.

The briefing also covered the Novacare Hospital project, which is estimated to cost Rs30 billion, with a 67% stake held by Maple Leaf. The project will be financed equally through debt and equity, with commercial operations expected to commence in September 2026. The company anticipates significant cost savings through its access to railway lines for transporting imported pet coke.

MLCF's management revealed plans to acquire 161 million shares of Agritech Limited, citing potential operational efficiencies due to the proximity of AGL's plant to their facility. Despite a current royalty impact of Rs60 to Rs70 per bag, the company is optimistic about a favorable court ruling outcome.

Looking ahead, the company foresees a 10 to 15% decline in local cement dispatches for fiscal year 2025. The management emphasized their focus on reinvesting in growth opportunities rather than prioritizing dividend payouts.