Cement sector profits up 38% in fiscal 2025

Pakistan’s listed cement makers closed fiscal 2025 with their strongest earnings in years, lifting combined post‑tax profit by 38% to Rs167.0bn, up from Rs121.4bn a year earlier. Revenue rose 7% to Rs895.5bn, while sector gross margin widened to 30.7% as companies held on to higher retention prices, coal stayed cheaper, and plants leaned more on efficient power sources. Dispatches edged up 2% to 37.4m tonnes, signalling a modest rebound in volumes against a backdrop of firmer pricing. The fourth quarter kept the momentum going: sales increased 5% year‑on‑year, and dispatches climbed 4% to 9.3m tonnes

Two causes stand out. First, finance costs fell 34% to Rs46.0bn, reflecting the easing of policy rates and tighter balance‑sheet management after an unusually expensive borrowing cycle in FY24. Second, other income jumped 33% to Rs36.4bn, boosted by interest and dividend flows that fattened the bottom line. Together with a better gross margin, these helped lift net margin to 18.6% for the year.