Karachi: The profitability of Pakistan's cement sector is expected to rise by 1% year-on-year to PkR18.0 billion in the second quarter of the fiscal year 2025, driven by higher sales volumes, despite challenges such as gross margin attrition and increased operational costs.

According to a statement by AKD Securities Limited, the projected growth in the sector is uneven across companies. Firms such as FCCL, KOHC, CHCC, and DGKC are anticipated to report improved profitability, while LUCK, MLCF, and PIOC are expected to experience a decline in their earnings.

AKD Securities Limited maintains a positive outlook on the cement sector, predicting an increase in core profitability. Within the sector, LUCK and FCCL are highlighted as preferred picks due to their expected performance and resilience amidst industry challenges. The analysis reflects a cautious optimism, balancing potential growth with existing operational hurdles.