Q1 cement sector profits likely to rise 16pc to Rs32.4bn YoY

Business Recorder reported that Topline Research expects profit across its cement universe to rise 16 percent year on year to Rs32.4 billion for the first quarter of FY27, up from Rs27.8 billion a year earlier. The research house also projects a 16 percent quarterly increase, driven mainly by higher other income, including a dividend from Lucky Electric Power Company Limited to Lucky Cement.

Net sales are forecast at Rs143 billion, up 25 percent year on year and 14 percent quarter on quarter, helped by higher cement prices and stronger local dispatches. Local dispatches are estimated to have risen 8 percent, while exports dropped 11 percent, and prices climbed by Rs100 to Rs150 per bag as fuel costs rose on elevated international coal and diesel prices. Finance costs, however, are expected to jump 51 percent to Rs3.4 billion, with Maple Leaf Cement accounting for nearly 57 percent after borrowing for its Pioneer Cement acquisition.

Lucky Cement's consolidated earnings per share are seen at Rs16.7, a rise of 11 percent year on year but a 3 percent fall quarter on quarter. Fauji Cement and DG Khan Cement are forecast to post sharp annual gains, while Kohat Cement and Cherat Cement are expected to show year-on-year declines. Maple Leaf Cement's consolidated earnings per share are projected at Rs3.8, up 47 percent year on year thanks to the consolidation of Pioneer Cement, though 11 percent lower than the previous quarter.