Hifsa Raja

Pioneer Cement Limited’s (PIOC) revenue in the first quarter of the ongoing fiscal year (1QFY23) increased to Rs8.3 billion from Rs6.2 billion over the same quarter of the last fiscal, but dropped from the previous, or the fourth, quarter of FY22.The revenue stood at Rs9.3 billion in 4QFY22, reports WealthPK. The company’s gross profit rose to Rs1.9 billion in 1QFY23 from Rs1.4 billion in 1QFY22, but was down from Rs2.3 billion earned in 4QFY22.

The net profit in 1QFY23 stood at Rs585 million compared to Rs480 million in 1QFY22. It is to be noted here that the company suffered a net loss of Rs578 million in the 4QFY22. The net profit margin for 1QFY23 stood at 7.04%, which was better than the previous quarter. Better margins were achieved due to operational efficiency.

Pioneer Cement Limited’s revenue totalled Rs31 billion in FY22, which was the highest in last five years. The company also saw its gross profit increase to Rs7 billion in FY22 from Rs4 million in FY21. It was also the highest during the last five years. The post-tax profit dipped to Rs1 billion in FY22 from Rs1.9  billion in FY21, reports WealthPK.

The company plans to add new capacity in coming months, hoping to reduce the gap between supply and demand as the rehabilitation process begins in flood-affected areas to rebuild homes and other infrastructure.

The company says the performance of the cement sector has been negatively impacted by the rising fuel and other input costs, decreased government funding on development projects, increased national grid tariffs, and increases in policy rates. Nonetheless, despite all these obstacles, the company's management will keep improving operational effectiveness and shareholder value.

Industry Comparison

Kohat Cement Company Limited, Cherat Cement Company Limited, Fauji Cement Company Limited and DG Khan Cement Company Limited are considered to be the competitors of the Pioneer Cement Limited.

Company profile

Products of Pioneer Cement include ordinary Portland cement and sulphate-resistant cement. Ordinary Portland cement is used in structural work, including all kinds of concrete construction. Sulphate-resistant cement is used where sulfate salts are present in the soil or in saline water. The company has an approximately 12 megawatts (MW) waste heat recovery power plant and a 24MW coal-fired power plant. Punjab and Khyber Pakhtunkhwa provinces are the main markets of the company.

Credit: Independent News Pakistan-WealthPk