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Cement dispatches grow 41 percent on yearly basis

By Tanveer Ahmed

KARACHI: The cement dispatches have marked massive growth of 41 percent year-on-year (YoY) in July of current financial year to 2.39 million tonnes as against 1.69 million tonnes in the corresponding of last year.

According to latest data of cement dispatches in the first month of current financial year, the growth includes exports of 441k tonnes, surging by phenomenal 134 percent in the month under review whereas the local sales of the cement registered a growth of 29.6 percent to 1.95 million tonnes during this period.

The company-wise details of cement dispatches revealed that Lucky Cement registered a growth of 44 percent YoY during the month of July with the 23 percent increase in the local sales of the company and phenomenal rise of 105 percent in export dispatches.

DGK Cement recorded a growth of 62 percent in the said period including 65 percent in its local sales whereas company posted a growth of 85 percent in export dispatches during this period.

Maple Leaf Cement’s dispatches rose by 64 percent in July this year with the 44 percent growth in its sales in the local market while its export dispatches did not see any growth in the month under review.

Fauji Cement’s overall dispatches were stagnant, as it witnessed no growth during the month while the local sales of the company were down by seven percent, however exporter dispatches were up by 41 percent in the month of July over the same period of last year.

Pioneer Cement recorded overall growth of 62 percent in its dispatches with 84 percent in the local sales and negative growth of 24 percent was seen on the export side.

On MoM basis, Lucky Cement saw a growth of four percent in July over the preceding month of June with 16 percent growth in its local sales whereas the export dispatches were down by 11 percent in this period.

DGK Cement registered 10 percent growth in overall dispatches with 11 percent in local sales while the export dispatches did not see any growth in the said period.

Maple Leaf Cement recorded growth of 40 percent in total dispatches with the 44 percent in local sales and seven percent on export side. Fauji Cement saw a growth a 12 percent with no growth in local sales and 125 percent in export dispatches.

Pioneer Cement’s dispatches were up by one percent with three percent rise in local sales and negative growth of 13 percent in the export dispatches.

And Pakistan Cement recorded overall growth of 42 percent including 43 percent in the local sales and 37 percent in the export dispatches.

Analysts identifying various reasons in overall growth in the cement sector believed that still there is a major potential of further export especially after the certification of some Pakistan’s cement companies by Indian authorities, these companies are gearing up to export cement to neighbouring country, once all the formalities are met.

About the drop in local sales and export dispatches of some companies during the month under review, Khurram Shehzad, analyst at Investcap listed the rainy season in the north of the country and even in its export markets like Afghanistan and African countries, which resulted in drop in the local sales as well as export dispatches.

About any impact of cement export to India on the local prices of commodity, Mr Shehzad did not see any negative fallout of export to India on the local market as after meeting the local requirements, an abundant quantity of cement would be available for export purposes.

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