Karachi: Power Cement Ltd. reported a significant financial turnaround in its recent analyst briefing, showcasing improved profitability and strategic shifts in its operational approach. The company posted a profit of PkR348 million in the first nine months of fiscal year 2025, a marked recovery from a loss of PkR1.2 billion in the same period last year. This improvement was attributed to reduced financial charges and enhanced operating efficiencies.

The briefing revealed a 19% year-over-year reduction in total offtakes for 9MFY24, primarily due to decreased clinker exports amid lower international prices. Export contributions to the topline fell to US$24 million from US$39 million in the previous year. However, management noted recent improvements in clinker export prices, now at US$35 per ton, with expectations for stability around US$37-38 per ton due to growing international demand.

Locally, Power Cement's sales declined by 3% year-over-year during 9MFY25, yet the company anticipates flat full-year sales. The company's local market share in the southern region stood at 19% during this period. Retention prices fluctuated between PkR14.5-15.5 per ton but have recently increased to PkR15.5k-16.5k per ton.

The company's reliance on imported coal was highlighted, with alternative fuels contributing around 10% to its energy mix. Coal costs averaged US$100-105 per ton during 9MFY25 and currently stand at about US$100 per ton. The power mix consisted of 60% grid, 34% waste heat recovery, and the remainder from solar energy. A new 7.5MW wind turbine, set for commissioning in the second half of FY26, is expected to enhance this mix further.

Looking ahead, management projects a 5-7% growth in local cement sales for FY25. The briefing concluded without providing formal coverage on the company's stock.