Industry

Power Cement’s market share increases to 19.9%

Karachi, June 26, 2022: Power Cement Limited (POWER) has increased its market share to 19.9% and is now the largest player in South after Lucky.

This was disclosed by the management of the company in its corporate briefing session lately.

The company believes that better quality of its line-3 production has helped increase its share in the market.

It is to be noted that the company offers Grade-53 cement which sets fairly quickly and attains ultimate strength within 7 days’ time versus 28 days for other cement brands.

The management foresees a 6-8% growth in South region dispatches in FY23, citing lesser correlation of the south market volumes with PSDP allocation as the key reason.

The company’s common export destinations are Bangladesh, Sri Lanka, Yemen, Madagascar and China.

The company’s coal consumption stands around 1,000 tons/day. The management apprised that the company has not imported any coal in the last 5 months and is mainly consuming Afghan coal which currently costs them lower than South African coal at ~Rs50-55k/ton.

The company’s new line has the ability to use coal with a lower calorific value and since Afghan coal has almost similar GCV as South African coal, there have been no issues in its usage so far.

POWER has a solar power generation plant of 7MW and a waste heat recovery plant of 9-10MW. The company has been actively exploring alternative solutions to reduce its power costs.

It is pertinent to mention here that POWER posted a loss of Rs 163mn (EPS Rs0.15) during 9MFY22 as against a profit of Rs 144mn (EPS Rs0.14) during the same period last year.

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