According to Topline Securities, its cement universe is expected to post profit of PKR12.5 billion for 4QFY24 as against a profit of PKR11.1 billion for 3QFY24, up by 13%QoQ, due to higher average retention prices.

This will take FY24 profits to PKR51.1 billion, up 84%YoY due to increase in GP margins to 29%.

While on YoY basis, Topline cement universe posted loss of PKR2.8 billion in 4QFY23 due to higher effective tax rate related to super tax liability. Excluding for tax implications, Profit Before Tax (PBT) in 4QFY24 is expected to increase by 45% YoY due to higher revenues and other income.

Net sales are anticipated to grow by 10%YoY to PKR91.3 billion in 4QFY24 despite 7%YoY decline in local cement sales, thanks to 11%YoY increase in average local cement prices.

Decline in cement dispatches in 4QFY24 was due to: 1) lower working days amid Eid holidays, 2) high cost of construction, and 3) lower demand due to economic slowdown.

Capacity utilization of the cement sector clocked in at 52% in 4QFY24, as compared to 55% in 4QFY23.

Gross margin of the sector are........

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