Pakistan’s 15 publicly listed cement makers closed the January‑to‑March 2025 quarter (3QFY25) with after‑tax earnings of Rs33.7 billion, up 89 percent year‑on‑year but 3 percent lower sequentially, according to a sector update circulated by Topline Securities last week. The disconnect between a spectacular year‑on‑year surge and a modest quarter‑on‑quarter dip is emblematic of the push‑and‑pull forces shaping the industry: better fuel economics and rising exports on one side, softer local demand and easing selling prices on the other.
Dispatch numbers tell the same story. Total sales volume slipped 7 percent QoQ to 11.0 million tonnes as the post‑winter construction lull arrived earlier than usual, yet was still 4 percent higher than the same period last year thanks to a 19 percent YoY jump in exports.
Sector revenues fell 15 percent QoQ to Rs168.2 billion even though they inched 6 percent higher YoY. The culprit was a pull‑back in average bag prices in the dominant North zone, down to Rs1,360 from Rs1,447 in the preceding quarter, as mills competed for shrinking retail demand once public‑sector projects hit funding constraints. Southern mills held the line at Rs1,382, barely a whisker below the previous quarter.
Gross margins nonetheless expanded 2.9 percentage points YoY to 29.7 percent, cushioned by cheaper coal and a more diversified fuel mix – northern plants leaned on Afghan and local coal while southern peers tapped South Africa’s Richards Bay cargoes that have slipped another 5 percent QoQ. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
