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Thatta Cement Company Limited (THCCL) has installed a 5MW solar power plant and is developing a 4.8MW wind power unit, reinforcing its commitment to green energy and cost efficiency, reports WealthPK.

According to the company’s financial report for the first half of the ongoing fiscal year 2024-25, the solar power plant became fully operational in late 2024 . It now supplies clean energy, reduces the company’s dependence on conventional power sources, and lowers electricity costs. The wind power project remains on track for completion by the third quarter of FY25, further strengthening THCCL’s renewable energy portfolio.

THCCL’s renewable energy investments are part of its broader strategy to modernise operations and enhance sustainability. The company aims to cut costs while aligning with international environmental standards recognising the growing importance of eco-friendly practices in global markets. Its solar and wind power projects support this vision, reinforcing its commitment to reducing its carbon footprint.

The company is leveraging solar and wind power to reduce electricity costs and its reliance on fluctuating grid tariffs and fuel prices. Thatta Cement’s shift to renewable energy has already yielded financial benefits, with a notable reduction in its cost-to-sales ratio to 68.79% in 1HFY25 from 78.84% in the same period last year, contributing to higher profitability. Additionally, sales revenue surged to Rs3.85 billion, while the gross profit margin improved to 31.21%.

Thatta Cement continues to enhance operational efficiency with the recent installation of a 150TPH impact crusher at its cement mills, improving grinding capacity while lowering power consumption. This upgrade contributed to a 34.78% year-on-year increase in clinker production, reaching 198,592 tonnes with a 73.55% capacity utilisation rate.

Similarly, cement production also rose by 12.61% to 251,113 tonnes in 1HFY25. Despite a 10.4% decline in domestic cement demand due to sluggish infrastructure activity and higher taxes, Thatta Cement increased local sales by 12.28% through strategic market penetration and competitive pricing, while benefiting from a 31.69% surge in exports.

THCCL remains optimistic about its future as Pakistan’s economic conditions stabilise with declining inflation, lower interest rates, and a stronger current account position. The company plans to expand its renewable energy portfolio and explore cost-saving initiatives to enhance efficiency. The company continues to modernise and adapt; it is well-prepared for long-term growth in an evolving market.

Credit: INP-WealthPk