Pioneer Cement’s profit dips 52% to Rs1.1b

KARACHI: Pioneer Cement Limited posted 9MFY18 profit after tax of Rs1.1 billion, down 52% on a year-on-year basis compared to profit after tax of Rs2.4 billion during the same period last year.

“Major reasons behind lower earnings were lower prices and higher energy cost, which is faced by the whole industry in the North while loss on other income is particular to Pioneer,” said Sherman Securities analyst Saqib Hussain.

The revenue of the company declined by 7% to Rs7.5 billion during 9MFY18 notwithstanding dispatches grew by 4% on a year-on-year basis. The cement price is said to have declined by 10% year-on-year basis in the north region. Gross margin of the company clocked in at 27.5% in 9MFY18 against 41.1% in 9MFY17. The decline has been attributed to higher energy cost as coal prices increased by 20% YoY during the period.

The company has reported a loss on other income of Rs94 million in 9MFY18, as against gain of Rs184 million in 9MFY17. 

Published in The Express Tribune, April 26^th, 2018.

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