Islamabad: Despite a dip in local offtakes, major Pakistani cement companies are expected to report significant earnings growth for the fourth quarter of fiscal year 2024, as per recent forecasts. The anticipated growth is largely attributed to higher cement prices and increased exports, countering the impacts of decreased local sales.

According to AKD Securities Limited, Lucky Cement Limited (LUCK) is projected to announce earnings of PkR14.7 per share for 4QFY24, a 66% increase year-over-year, with revenues expected to reach PkR28.9 billion. The substantial growth is driven by a 10% annual increase in average cement prices and a 2.4 times increase in exports. Similarly, other companies like Maple Leaf Cement Factory (MLCF) and Fauji Cement Company Limited (FCCL) are also expected to report substantial earnings improvements, with significant increases in their respective net profits.

The cement sector’s performance is further bolstered by favorable conditions such as declining coal and pet coke prices, alongside strategic price adjustments that have helped companies maintain profitability despite challenges in the market. The reports also suggest a promising outlook for the upcoming fiscal year, with continued buy recommendations for several companies amidst evolving market dynamics.