AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Islamabad: The cement industry in Pakistan has achieved unprecedented profitability as the financial year 2025 closed, buoyed by strong margins and decreased financial burdens. This remarkable performance is underscored by a 7% year-on-year growth in revenue for the fourth quarter, propelled mainly by a 6% year-on-year rise in dispatches and elevated retention prices.
The sector’s gross margins saw an impressive expansion of 5.7 percentage points compared to the previous year, a development largely attributed to reduced coal prices and increased utilization of renewable energy sources. Cost efficiencies also played a significant role in this growth. Furthermore, a 53% year-on-year reduction in finance costs, owing to monetary easing, led to a substantial 48% year-on-year surge in net earnings.
Sector analysts maintain an optimistic outlook, recommending an Overweight position based on the resurgence in dispatches, robust margins, and diminishing financing expenses. Although recent floods present a temporary challenge, anticipated reconstruction efforts are expected to mitigate any adverse effects. Among the standout companies in this thriving sector are KOHC, CHCC, and MLCF, which have been highlighted as top selections for investors.