Cement Companies Anticipate Strong Earnings Growth in 3QFY25

KARACHI: Maple Leaf Cement Factory Ltd (MLCF), D.G Khan Cement Company Ltd (DGKC), and Cherat Cement Company Ltd (CHCC) are expected to post significant earnings growth for the third quarter of fiscal year 2025, driven by improved margins and increased income. According to projections, MLCF and CHCC are anticipated to report earnings of Rs1.85 per share and Rs7.9 per share, reflecting year-over-year growth of 71% and 24%, respectively. DGKC is forecasted to achieve earnings of Rs3.7 per share, marking a 37% increase from the previous year.

The projected earnings growth for these companies is attributed to various factors, including improved margins and higher income. DGKC’s performance is further supported by a 36% increase in dispatches and a reduction in financial charges.

Cement prices in the North region have been on the rise, increasing by Rs120 per bag since late February 2025. This trend is expected to benefit all three companies, contributing positively to their financial performance.

However, potential challenges remain for CHCC. An anticipated increase in the limestone royalty charge, aligning it with charges faced by cement players in Punjab, could impact earnings. This change is projected to have a negative effect of Rs9.5 per share on CHCC’s earnings forecast for fiscal year 2026.

These projections are based on analysis by JS Global, providing insights into the financial outlook for some of the key players in the cement industry.