Attock Cement Projects Decline in Dispatches for FY25 Amid Strategic Investments

Karachi: Attock Cement Pakistan Limited (ACPL) has signaled a challenging fiscal year ahead, with expectations of a 10% decline in cement dispatches for FY25. The company, which recently held a corporate briefing to analyze its financial results for FY24 and the first quarter of FY25, reported a significant decrease in earnings per share (EPS) for 1QFY25 compared to the previous year.

According to JS Global, ACPL posted an EPS of Rs25.96 for FY24, marking a 2.4-fold increase year-over-year, largely attributed to a gain of approximately Rs4.3 billion from the divestment of its subsidiary in Iraq. However, the EPS for 1QFY25 saw a drastic decline of 96% year-over-year, standing at Rs0.45.

In response to the fluctuating market conditions, ACPL is investing in a 4.8MW wind power plant at a cost of US$4.5 million. The plant, aimed at reducing the company’s reliance on grid electricity consumption, is expected to become operational in the third quarter of FY25. This strategic investment is part of the company’s broader efforts to enhance operational efficiency amid a 15% year-over-year decline in local cement dispatches in the first four months of FY25.

Additionally, ACPL has augmented its production capabilities by adding a new line with a capacity of 1.275 million tons per annum. This development, achieved at a cost of US$85-90 per ton, boosts the company’s total capacity to 4.3 million tons annually, securing a 23% market share in the Southern market. Despite these expansions, the company remains cautious about the overall outlook for the current fiscal year.

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